Opening up capital refers to a company selling a portion of its equity to external investors to raise funds for development, growth, or strategic projects.
This can take several forms:
- Capital contributions from new investors, who become partners or shareholders in the company.
- An initial public offering, allowing the company to offer shares to the public.
Opening up capital strengthens the company’s financial resources, shares risks with partners, and can provide access to investors’ expertise or networks. In return, it requires sharing control and decision-making with new shareholders.
Opening up capital is a financing and strategic partnership mechanism that enables a company to grow while bringing in new investors.