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How do small businesses invest?

Finally, working within federal regulations limiting the amounts they can invest. Small business investments can take the form of equity or debt. Equity involves buying an ownership stake in the company in exchange for an infusion of capital, much like purchasing shares of a public company on the stock exchange.

Which companies invest in small businesses?

Outside of the crowdfunding space, the most common companies that invest in small businesses are banks and credit unions on the debt investment side and venture capital firms and angel investors on the private equity side. What questions should I ask a small business before investing?

How do ordinary people invest in startups?

Ordinary people can invest in startups via crowdfunding sites. Startup investing platforms offer a curated selection of companies, and require varying minimum buy-ins. Major players in the crowdfunding startup space include:

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