The range of possibilities is very broad. A fundamental distinction is made between equity and debt in accounting terms. The most common financing instruments are shares (equity) and loans (debt). However, there are also hybrid instruments, so-called mezzanine capital. The term is derived from the mezzanine floors of Italian buildings at the time of the Medici and is analogous to an intermediate floor between equity and debt in the company balance sheet. These include, for example, convertible loans, which can be converted into shares (equity) at a certain point in time.
Which financial instruments are usually suitable for raising capital with investors?
All FAQs Published at: 2024-02-05