Debt is always cheaper than equity. Theonly time it's not is when your business is not growing.

Let's say you're a founder with a $10 million business, and you're looking toraise $2 million to take it to the next level.

When you're choosing between debt and equity. The easiest way to think about itis as a slice of pie. So if you raise that $2 million of debt: When yourbusiness grows and doubles from a $10 million to a $20 million valuation, thatdebt will have cost you the $2 million plus interest.

If your business raises $2 million of equity and then doubles their valuationto $20 million, that cost has doubled from 2 to $4 million.

Debt is a fixed cost, it stays the same throughout the lifetime of the loan.

Whereas equity, once you give it away, as your business grows, that costcontinue to grow alongside.

So if you're a founder who has access to debt, congratulations.

You've done well.

It's the most capital efficient way for you to grow your business while holding onto your equity.