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Conclusion:
An MBA in Finance significantly enhances the analytical skills necessary for a successful career in equity research. From mastering financial modeling and valuation techniques to understanding macroeconomic trends and improving communication, an MBA provides equity researchers with the technical and strategic abilities to make sound investment recommendations. The structured learning environment, combined with hands-on experience and networking opportunities, makes it an invaluable tool for professionals looking to excel in equity research
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INTRODUCTION
Finance is considered to be the life blood of any business. It is always better that venture should be self funded because there is no better option than that. There are various ways by which any company can raise finance and especially the startups who is in the most need for initial finance. Company needs finance at various stages- from starting up, expanding, developing new products, or even during times of financial difficulty. Without sufficient funding, a business cannot operate efficiently or pursue opportunities for growth.
The company has several options to raise finan
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Equity finance is the process of raising capital through sales of shares. Both public and private companies raise money for short term needs. Equity financing can come from friends, family, professional investors or an initial public offerings(IPO).
It basically involves the selling of equity instruments such as different types of preferred stock and equity units and warrants. The startup that grows into successful company will have several rounds of equity financing. Equity finance are often used by startups but companies which have risky business, some business looking to manage debt, esta
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• Venture capitalist/private equity
It is the first large investment that a startup or nay company can expect to receive. The investor and the company or the startup will normally enter into a non-binding offer based on the preliminary valuation of the company usually followed with a financial, legal and technical due diligence on the company as required by the investors.
• Angel Investors
Angel investors are persons or group of industry professionals who are willing to fund the venture in return for an equity stake. The investment done by angel investor must shall be locked in for the per
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It is the sort of financing option where the startup or any company tries to ‘’bridge’’ the gap between larger funding round. It is an interim financing round raised between larger funding rounds. Startups always first targets the their existing investors during the bridge round and raise from new investors if only additional funding is needed.
• Series Funding
Series funding is the multi round process where a startups raise capital from investors in exchange of equity of the company. After the seed funding or Angel funding round and bridge funding round, series has been completed series
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PRE-SEED FUNDING-
This is the earliest stage of equity funding. This stage occurs before the minimal viable product (MVP) has been developed as the funds are required to bring business ideas for conducting market research. These funds are usually obtained from business founder’s savings, family or friends through investment from angel investors.
SEED FUNDING-
The funding done at the nascent stage is called seed funding and the capital is known as a seed capital. Technically seed capital is referred as the initial capital which is used at the time of starting the business. Seed funding allo
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Series A is the term used to describe the first round of funding for a venture firm and third stage for startup. In this stage startup are expected to have a business model that will generate long term profits.
Typically, Series A rounds raise between $2 million and $15 million, but this number keeps on varying in different circumstances. Investors invest only when they think the idea is good and in case of and in case of venture capital fund it is the first round where an established startup company scores funding from one or more venture capital firm to set up mass production and increase
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Series B is the stage where the business is taken to next level and see if it’s products market fit is validated and is startup has started to expand in its market this round is considered to be safe as startups reaching this round are expected to grow. So series B is officially the third stage for the startup and second stage for the venture capital firm. It is generally needed for scaling up the startup operations. It generally raise $5 million to $10 million but sometimes raise upto$20 million.

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Business that raises series C funding are already successful and they are just looking for extra funding to help them develop new products, expand into new markets or can even acquire other companies. The main motive of investors in this stage is to receive more than the double amount back. Series C funding is focuses on scaling the company, growing as quickly and successful as possible. Here in this funding mostly hedge funds, investment bank, private equity firm are accompanied by the above mentioned investors the reason is that company has already proven itself to be a successful business
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Equity financing is basically raising capital through different stages in which each stage attract new investors and larger capital as the company expands and get mature. There are also other methods which are used to raise equity finance such as IPO, crowdfunding etc. but the ultimate goal of equity finance is to enable companies to achieve sustainable growth and long term success while also valuing their shareholders.private equity firm are accompanied by the above mentioned investors the reason is that company has already proven itself to be a successful business model so investors motive
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Financial analysts are crucial players in the determination of essential decisions, management of the portfolio, and investment plans. However, their jobs carry risks by nature and may result in critical consequences when not dealt with appropriately. Here, we discuss a few of the most typical risks financial analysts face, as well as strategies for dealing with these risks.
Market Risk
Perhaps the greatest risk is in market risk. It does have some resemblance to any form of fluctuation for losing an investment through change in market price. Very extremes in the prices of equities, interes
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The way the market risk is handled by diversifying the portfolio into several sectors, geographies, and asset classes can mitigate such risks. The protection of price movements in case of any adverse changes is achieved by hedging options and futures. Analysts have to monitor the economic indicators, geopolitical events, and news related to an industry at regular intervals in order to make predictions that may eventually be useful for adjustments of portfolios.Credit Risk
This could be the risk that either an individual or institution runs from a borrower who is either likely to default on a
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How to Manage It: Thorough credit assessments by analysts using credit rating agencies, financial statements, and industry benchmarking help manage credit risk. A strict due diligence process ensures that all potential investments are adequately evaluated. Another aspect is maintaining an updated risk model for credit analysis, factoring in current economic conditions, that can ensure accuracy in the assessment of reliability of the borrower.
Operational Risk
This is a type of risk that is incurred when there is a loss that arises from failures in internal processes, systems, or controls. I
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Liquidity risk arises when an analyst or investor cannot sell or buy an asset quickly without a significant reduction in price. For example, investments in niche markets or illiquid assets such as real estate are very difficult to sell during times of market downturn, hence locking capital and suffering losses.
How to Manage It: Liquidity risk can be managed by maintaining a balanced level of liquid and illiquid assets in portfolios. For example, liquid assets include stocks or bonds that can quickly be converted into cash when a firm is facing financial stress. Developing an emergency liqui