Entrepreneurs are value creators, they take financial capital and human capital process things to create a value proposition then distribute their product or service to the market for a profit. The investors provide financial capital to the businesses/entrepreneurs, and they do so with the intent of making money, either through selling a portion of their ownership in the business or through an income stream by loaning money to the business.

So what if your business desperately needs capital but banks won’t lend to them? This is the situation where a businessman or an entrepreneur is dilute their share in the company by selling a portion of your business to another investor.