I would assume it should be the other way around because of different risk levels. Doing old things better is relatively low-risk (because the thing already wo

I would assume it should be the other way around because of different risk levels. Doing old things better is relatively low-risk (because the thing already works) and therefore should be funded by debt, not equity. Doing brand new things is high-risk (nobody did it before), so equity-based funding (maybe after a period of bootstrapping) for it would be more appropriate to the VC model.