Traditionally debt has been seen as the cheaper way to capitalize a business. It's just that start ups are terrible credit risks and had no ability to get loans

Traditionally debt has been seen as the cheaper way to capitalize a business. It's just that start ups are terrible credit risks and had no ability to get loans. Obviously every situation is unique. The freedom of a lot of money now might be worth giving up equity, especially in a market where first mover is so significant. But if you use debt, all the upside is yours. I still think debt is better, especially because a lot of equity comes with with debt-like terms like liquidation preferences. So it's basically the worst part of debt and equity combined.