Given the seemingly lower risks and potential benefits of equity, you might wonder why it isn’t always the preferred instrument for early-stage funding. There’s one simple reason: Equity is expensive. Every percentage point you give up in an equity deal takes a huge bite out of your profit when it’s time to exit. For some businesses, taking on debt to finance growth might make better long-term sense.
In this episode, host and business coach Tom Ryan talks about the bigger picture of debt and equity as fundraising instruments. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading