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Equity is the most common financing approach, where a startup offers shares (percentages of ownership in the company) in exchange for cash, allowing them to raise capital for growth purposes. And a way of acquiring the money needed to scale the business is by selling shares, effectively selling ownership in the company, for cash. Equity financing can come from day-to-day investors, the three Fs (family, friends and fools), angel investors, VCs or an IPO (initial public offering).