Equity Financing is the process of raising capital through the sale of shares. Investors purchase equity in a company in exchange for cash or other assets. Equity investors typically receive ownership stakes and voting rights in the company.There are several different types of equity financing, including private equity, venture capital, and public offerings. Private equity firms typically invest in unlisted companies, while venture capitalists invest only in young businesses with high potential growth rates. Public offerings allow companies to sell shares to the general public on a stock exchange.Equity financing can be a great way to raise money for your business. It allows you to bring on new investors who can help you grow your company and achieve success. However, it's important to understand all of the risks involved before making any decisions.