Equity Capital

Definition ∞ Equity Capital represents the funds obtained by a company or project through the issuance of ownership shares to investors. These investors acquire a stake in the entity, participating in its profits and losses. In traditional finance, it contrasts with debt financing.
Context ∞ In the digital asset space, equity capital is a recurring topic in news concerning blockchain startups and companies developing Web3 infrastructure. While many crypto projects pursue token-based funding, traditional equity investment remains a significant funding source for infrastructure providers and regulated entities. The debate often centers on the balance between decentralized token governance and centralized equity control in new ventures.