In the past, most small businesses would secure financing by applying for a bank loan or approaching individual investors. But today, a growing number of businesses are securing capital through private equity firms.

Private equity firms look for small businesses or startups with high growth potential and offer them expertise and financing, with the goal of eventually selling the company for a profit. The private equity market has grown substantially, and as of 2021, private equity firms manage roughly 20% of U.S. businesses. READ MORE