Equity loan is typically an "investment" in a company
that is secured by a certain amount of that company's shares and
structured, in part or whole, as a loan. Investment banks will
provide funds secured by the "equity" or ownership shares
of your company.
Companies that receive funding are those in large rapidly growing
markets, or in niche markets which are not targeted by major players.
Investment Stage
Early and later stage companies with a founder and partial management
team with revenue or profits and the need for expansion capital.
Size of the Investment
Typically $1-2 million initially with up to $5-10 million over
the life of the investment.
Duration
Investments typically are for 3-5 years, but sometimes may last
longer.
