Equity financing

What type of product is it?

Share capital refers to financing provided internally, i.e. directly by shareholders (owners). Our equity financing involves transferring a percentage of your company's shares to the SADC in exchange for an investment on our part.

What are the special features of this financial product?

  • By their very nature, shares can be transferred to a third party, whether a financial institution, an investment fund, a partner or an investor.
  • Given the different areas of expertise required for this type of transaction (accountant, tax specialist, notary, etc.), this financing model is generally more expensive and complex to implement, and requires a review of several legal aspects related to company ownership (shareholders' agreement, etc.).
  • Particular attention must be paid to defining the rights and responsibilities of each shareholder.
  • The sale of shares in a start-up company can go through a SAFE-type process whereby, among other things, the proportion of the number of shares in return for the money invested will be determined in a subsequent round of financing.

What are the advantages of this financial product?

Despite the peculiarities of this type of financing, the advantages are not negligible and can be highly beneficial. For example, when a new shareholder brings in more than just money, his or her contribution can be highly strategic, giving the whole organization the benefit of his or her network of contacts, experience, etc. 

In addition to answering your questions, our SADC experts can help you make a real analysis of your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business could be developed at the same time.

See the list of different needs on the right. This financial product specifically meets the following needs:

 

Don't hesitate to apply to SADC for financing. We'll help you think through your project and bring it to fruition.

Apply for SADC financing online

We've been supporting the region's retailers and entrepreneurs for 30 years.

Entrepreneurs in the Achigan-Montcalm region, find out more about our growth coaching and financing services.

Please do not hesitate to contact us for further information.

For information on CFDC or BDC services, financing or technical assistance, please contact your local CFDC or BDC. 

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