Fundraising is the process by which a company raises capital from investors (business angels, investment funds, banks, or other financial partners) to finance its development, innovation projects, expansion, or cash flow needs.
This process can take several forms:
- Capital contribution: investors receive shares or stock in the company in exchange for their capital.
- Loan or convertible debt: the company receives funds that it must repay or that can be converted into shares at a later date.
Fundraising is often used by start-ups and innovative companies to accelerate growth, launch new products, or enter new markets.
Fundraising is a strategic way for a company to mobilize external financial resources while potentially sharing capital or risk with its investors.