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Equity (ownership) capital is capital raised by offering shares for sell with a key difference being whether those shares are sold privately i.e. shares in an organization within a private group of investors or publicly i.e. shares in an organization that are listed on the stock exchange.

Venture capital firms are a group of investors who invest into organizations they think will develop at a rapid speed and will show up on stock exchanges in the future. They invest a larger amount of money into organization and compared to angel investors they receive a larger stake in the organization. The method is also referred to as the private placement of stock with investors .

Organizations that are more well grounded can raise fund with a public stock offering. The public stock offering allows organizations to raise funds by offering its shares to the public for trading in the registered stock markets.