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Key Takeaways

Debt-based financing forces companies to have strong fundamentals (strong margins, customer retention, real cash flow), while equity can mask inefficiency.

Equity may feel safer, but once equity is raised, expectations escalate, growth becomes a narrative you must defend, and the company stops being purely yours.

If a business can’t support modest debt, that’s valuable data. It exposes issues — like revenue concentration, high churn or weak pricing — early.

Companies that build under the constraint of debt make better operational decisions that compound over time.

There’s a strange thing happening in boardrooms right now.

If you tell people you’re raising equity, they nod in approval.…