Subcommittee on Economic Growth, Tax and Capital Access
April 19, 2012
Equity Finance: Catalyst for Small Business Growth
Equity financing is a funding method where a business owner sells a percentage of their company in exchange for an ownership stake. Because many start-up businesses do not have sufficient assets to pledge as collateral to secure a bank loan, equity finance is an important source of funding. Equity finance provides not only growth capital, but also strategic partners who are invested in the business’s success. Witnesses discussed the affect of the current regulatory environment on equity finance and ways to strengthen the entrepreneurial funding ecosystem.
Opening Statement:The Honorable Mick Mulvaney (R-SC)
Witnesses and Testimony: