Equity Stake

An Equity Stake is the percentage of ownership an investor or shareholder holds in a company. It reflects their claim on company profits, voting power, and proceeds from potential liquidity events such as acquisitions or IPOs.

Equity stakes are:

• Proportional to the number of shares held relative to total outstanding shares

• Valuable for strategic investors, founders, and employees

• Often used to align stakeholder incentives with company performance and long-term value creation