Equity
Equity represents ownership interest in a company, providing a stake in the firm's future profits and governance. For venture capital and private equity investors, equity is the primary vehicle for achieving returns on investments. It is critical for structuring deals, aligning incentives, and maximizing exit valuations. In these sectors, equity plays a central role in driving growth and scaling portfolio companies.
Key Takeaways
- Equity provides ownership interest and potential for profit.
- Central to structuring deals in VC and PE.
- Aligns incentives between investors and companies.
- Crucial for driving growth and maximizing exits.
