What is capital?
Capital refers to the financial assets — cash, securities, equipment, real estate, intellectual property and other resources — available to a business to fund its operations and growth. In corporate finance, capital is commonly split into equity capital (ownership stakes) and debt capital (loans).
From a startup perspective, capital includes equity raised from founders, employees, angels and VCs; debt facilities; revenue-based financing; grants; and reinvested earnings. Each capital source carries different cost, control and reporting implications.