Whether you're taking on a venture capital investment, revenue-based financing, or a bank loan, it's all money. No matter how you brand that money, it's given to founders with the expectation of being paid back, PLUS compensating the financier for taking the risk.

Debt requires regularly scheduled repayment, including interest as compensation. Equity investment requires payment via the increased share value or dividends. BUT don't get it twisted — everyone is giving you money to make themselves money.

Before taking any financing, ask yourself, "what is the cost of using this money?" Too much debt service can leave your company with too little cash to invest in growth. But, maybe, more importantly, selling too much equity can leave the common shareholders at the bottom of the capital stack, with little to no reward for creating a fantastic company. Optimizing both is a winning strategy for building a stable business and creating value for everyone involved.