Assets with delayed growth: how to invest in the future

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Forms of investment in business
Attracting investments occurs in various forms, which have their advantages and disadvantages for both parties. Let's consider the main types of investments.

Equity financing - the investor receives a share of the company's capital and expects to receive a share of the profits in the future. This is the most common option for investing in startups and growing businesses.

Loans and credits - the company borrows money from argentina whatsapp number data the investor at interest with the obligation to return the entire amount within the agreed time frame. This form is more suitable for an existing business with a stable cash flow.

Royalty — an investor finances a project in exchange for a portion of each sale of a product or service. This format is more common in creative industries: cinema, music, games.

Convertible loan - funds invested by the investor can be converted in the future into a share in the company's capital under pre-agreed conditions. This is a kind of hybrid of debt and equity financing.

Mixed form - an investment transaction involves a combination of several instruments, for example, a share in a company and a loan at the same time.

When choosing a form, it is important to consider the current state of the project, its development plans and the investor's expectations. In any case, all conditions must be spelled out in detail in legal documents.