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Equity Funding

   Also found in: Wikipedia 0.03 sec.
Equity funding
An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund.

Equity Funding
1. An insurance policy paid for by a mutual fund. That is, the value of the shares of the mutual fund pays the premiums of the insurance policy. Equity funding can be useful because it provides the risk reduction of an insurance policy while allowing the policyholder to keep any returns from the mutual fund over and above what is owed for the premium. It is most common with life insurance. However, the practice is controversial, as it has been associated with the Equity Funding Corporation of America, which offered this investment vehicle. This company perpetrated massive accounting fraud in the 1960s and 1970s. Perhaps because of this, equity funding is not very popular with investors.

2. See: Equity financing.


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has secured $30 million in new equity funding from Richland Ventures of Nashville, Oxford Bioscience Partners of Boston and First Avenue Partners of Nashville.
The region appears to have suffered from a lack of attention from investors in recent years, as there is a clear demand for equity funding judging by the interest we have received already.
THE widely acclaimed BBC2 series Dragons' Den (which thankfully contrived to ignore the despised 'business angel' in its title) conveys the impression that all an entrepreneur has to do to raise informal equity funding is get himself in front of a panel of rich people and shout about how good his project is.
 
 
 
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