In this masterclass episode, we explore one of the most critical financial decisions every founder must make—how to fund your startup. Should you give up equity, take on debt, or use both? This episode breaks down the core differences, benefits, and risks of equity financing, debt financing, and venture debt—helping you craft a capital strategy that supports growth without sacrificing your vision.

Main Topics Covered:

• Equity vs. Debt: Control, dilution, and financial risk trade-offs
• How venture debt extends runway and supports growth without further dilution
• The "staircase" financing model used by top FinTechs to balance debt and equity
• What VCs, accelerators, and lenders really look for when funding startups
• The hidden risks of convertible notes and SAFEs in M&A scenarios
• Stage-specific fundraising strategies from pre-seed to Series C+
• Tactical recommendations for negotiating term sheets and managing dilution

Key Takeaways:

• Founders must move beyond “equity vs. debt” and adopt a strategic blend that evolves with their company’s maturity.
• Equity brings smart capital but dilutes ownership and control.
• Debt preserves control but requires repayment and is best used when predictable revenue exists.
• Venture debt is a powerful tool to extend cash runway between equity rounds.
• Mismanaging convertible debt can result in unexpected and severe dilution during exits.
• The best founders treat capital as a strategic signal to future investors—not just a cash infusion.

👉 If you’re a founder navigating fundraising and want expert help building your capital strategy or raising funds, visit startupwarriors.io/podcast to get started.