How can a company raise money to grow?

A company can raise money through:

• Equity financing.
• Debt financing
• Others (without dilution or obligation to repay)

Debt is usually cheaper than Equity because it guarantees repayment. Debt capital can be obtained by taking out loans or issuing corporate bonds in exchange for cash. Conversely, equity can be raised by going public through an IPO, angel investor, venture capital, or private placement.

In the very initial stages, a company can also self-fund or take funds from close friends and family or apply for grants.