{"id":182798,"date":"2023-09-05T02:40:47","date_gmt":"2023-09-05T01:40:47","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=182798"},"modified":"2025-07-02T00:37:56","modified_gmt":"2025-07-01T23:37:56","slug":"startup-capital-structure","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/startups\/startup-capital-structure\/","title":{"rendered":"What Does My Startup’s Capital Structure Consist Of?"},"content":{"rendered":"\n

If you own a startup, you may hear talk of capital structures. It is often unclear what this means. In short, your startup\u2019s capital structure<\/a> refers to how your business has raised financing to fund its long-term operations. This article will give examples of capital structure, their implications, and how you can determine your startup\u2019s capital structure.\u00a0<\/p>\n\n\n\n

What is a Capital Structure?<\/h2>\n\n\n\n

When forming a business, it almost always needs upfront cash to fund its operations and grow. Likewise, throughout the life of a business, to continue growing, it may need access to additional sums of money. <\/p>\n\n\n\n

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A business capital structure describes the source of a business\u2019s long-term financing. How your startup arranges its capital structure can have important implications for its long-term growth and ability to access additional financing.<\/p>\n<\/div>\n\n\n\n

Sources of Capital <\/h2>\n\n\n\n

There are two primary ways that businesses raise permanent capital:<\/p>\n\n\n\n