The downside of being able to raise equity capital from other people is that an entrepreneur must inevitably share control with other investors.

Question

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When an entrepreneur raises equity capital from other people, they have to dilute their ownership stake, which means they have to share control with other investors. This is a common tradeoff of raising equity capital and is one of the downsides of it.

The Downside of Being Able to Raise Equity Capital from Other