In general about finance

Financing of businesses can be divided into equity capital and foreign capital. Equity capital is when it is the owners who provide the financing. That may happen when existing owners inject more capital into the business, or when new owners are able to raise capital against a stake. When you open for new owners it means that the existing owners get a reduced stake. For entrepreneurs, it is common to raise equity from new owners, to finance further development of the business.

Most businesses also have foreign capitalization to a greater or lesser extent. The most common are loans from banks, but it is becoming increasingly common to borrow from others when issuing bonds. By lending money to the bank or by issuing bonds, they do not give up ownership interests in the company, but in return, the bank and bondholders in practice have priority for owners to recover their capital.

There are also a number of other ways of raising capital, and some of these funding methods are relatively new. An example of this is so-called crowdfunding. We have interviewed Sebastian Martens Harung, entrepreneur and general manager of Kameo Norway, about this form of financing.

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