Deals & Capital
Venture Debt vs. Equity: What a $2.5M Raise Really Costs Founders
Raising $2.5 million involves a trade-off: venture debt costs $350k-$500k in cash but minimal dilution (0.5-1.5%), while equity costs nothing upfront but dilutes founders by 15-20%. Founders must weigh cash flow and runway against ownership preservation when choosing between debt and equity.
Isabella Reyes·October 23, 2026
