Used with permission. See original image and article at http://fundersandfounders.com/how-funding-works-splitting-equity

The 3D space is filled with entrepreneurs.  As you start a company money is often a chief concern, either for start-up or expansion.  Loans are one option, so are family, but another option is selling equity (part ownership) in your company.  Settling on a fair value for part of their company can be quite traumatic for a entrepreneur as we all see our “child” as the most beautiful and full of potential.  This causes many to refuse money that could have a dramatic positive impact on their company and its value.  I guess the saying, “I’d rather own a little of something big than all of nothing” is really true.  Be sure to get wise and unbiased counsel for any equity decision, choose partners that bring more than money and embrace the often uncomfortable change that comes with growth.