Equity financing requires that you sell an ownership interest in the business in exchange for capital. This can be your money or other people’s money. Investors own a part of your company represented by shares of stock or a partnership interest. The most basic hurdle to equity financing is finding investors who are willing to buy into your business. Family and friends are a common source of equity financing for start up businesses. The amount of equity financing that you undertake also depends upon your willingness to share management control. By selling equity interests in your business, you potentially sacrifice some of your autonomy and management rights.