Financial Capital is any economic resource used by businesses to buy what they need to make their products or to provide their services to the
sector of the economy upon which their operation is based; it comes from two sources: debt and equity.
Debt Capital refers to borrowed funds that must be repaid at a later date, usually with interest. Common types of debt capital are bank loans,
personal loans, overdraft agreements and credit card debt.
Equity Capital refers to funds generated by the sale of stock, either common or preferred shares. While these funds need not be repaid, investors
expect a certain rate of return.
Private Equity (PE) offers a blend of equity and debt and typical strategies include leveraged buyouts, venture capital, growth capital, distressed
investments and mezzanine capital; typically to gain control of an existing or mature company.
Venture Vapital (VC) is money provided to seed, early-stage, emerging and emerging growth companies. The venture capital funds invest in companies
in exchange for equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology and IT.