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They may also share proceeds with, or provide discounts to, landlords and, in some cases, offer an equity participation in the company.
It also spent Eu 435 million ($580 million) for a 10.7% stake in incubator Rocket Internet AG, $445 million of which was paid in cash and an additional $135 million represented by an equity participation in Global Founders Capital Funds.
As it turned out, businesses with reasonably good prospects could obtain funding in return for some sort of concession: a strategic alliance, a pledge of collateral or an equity participation.
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It brings in a total equity participation of €245 million — €136 million from Youngman plus €109 million from Pang Da, which will have a 24 percent stake in Spyker.
In Segway, Doerr made the largest investment--$38 million--that his firm, Kleiner Perkins had ever made and at an absurdly low equity participation (nobody will confirm but it was certainly in the area of 5%).
By partnering with a national retailer and offering equity participation Time Inc. could end up generating a rate base that would have otherwise cost tens of millions of dollars to develop.
Before we get into the data, there are two big caveats: Firstly, the nature of the early stage market means there are many differences between businesses – especially in how much they can genuinely afford to pay and how much compensation may be 'deferred' due to equity participation (as a rule of thumb, the earlier you are in, the greater the longer term upside should be).
"When you have equity participation, it encourages an entrepreneurial attitude among managers," says ABB's chief executive, Gran Lindahl, 53, who says the program has been a big success.
Mortgages and car loans can also be built upon a foundation of some kind of equity participation; leasing, too, is allowed.
Delhi Metro Rail Corporation Limited (DMRC), a state-owned company with equal equity participation from Government of India and Government of National Capital Territory of Delhi built and operates the Delhi Metro.
Delhi Metro is being built and operated by the Delhi Metro Rail Corporation Limited DMRCC), a state-owned company with equal equity participation from Government of India and Government of National Capital Territory of Delhi.
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