In early stage companies that may have lumpy revenues, especially in a recession, I am happier with dilution than debt. Because you must pay back debt in a non lumpy way. And with equity you benefit from a high P/E.
Probably for each individual company there is some ideal balance between debt and equity financing. Which is why you hire a good CFO. A good example of creative financing is Tesla. Basically they got their money almost free.
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