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THE EQUITY CAPITAL GAP
- Article from:
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Stanford Social Innovation Review
- Article date:
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July 1, 2008
- Author:
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Copyright informationCopyright Stanford University, Center for Social Innovation Summer 2008. Provided by ProQuest LLC. (Hide copyright information)
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For-profit businesses can efficiently and quickly raise large amounts of money to fund growth and innovation by tapping equity capital-money that people invest in a company in return for ownership and a share of profits. The nonprofit world has no corollary, making it difficult, costly, and time-consuming to raise money. In this article the author explores ways that nonprofits and funders can create their own version of equity capital, and, just as important, develop an equity approach to doing business.
IMAGINE FOR A MOMENT THAT OUR 2ISTcentury economy were transported back to the 15th century. Businesses, by and large, would be tiny by today's standards. Most revenue would be in the form ...
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