Questions: Five sources of Equity Financing are:

Equity financing involves raising capital through the sale of shares in a company. Here are five common sources of equity financing:

1. Angel Investors: These are affluent individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investors often provide more favorable terms compared to other lenders because they are investing in the person as well as the viability of the business.

2. Venture Capital: This is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

3. Initial Public Offering (IPO): This is the process by which a private company can go public by sale of its stocks to general public. It allows a company to raise equity capital from public investors.

4. Crowdfunding: This involves raising small amounts of money from a large number of people, typically via the Internet. Crowdfunding can be a way to raise equity financing by offering shares in the company to the public.

5. Private Equity Firms: These are investment management companies that provide financial backing and make investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Each of these sources has its own advantages and disadvantages, and the choice of which to pursue depends on the specific needs and circumstances of the business seeking financing.