There is a common misunderstanding: less expensive debt is not a replacement for equity.

FORBES: Back to the Future: How To Fund A 21st Century Startup

While venture debt can be an important tool at any stage of development, it is not and should never be seen as the primary source of capital or a replacement to equity provided by the venture capital or private equity.

FORBES: Back to the Future: How To Fund A 21st Century Startup

This assumption was based on the stable underpinnings of auto demand--cheap financing by car companies (and by home equity loans) and a customary replacement cycle of three years.

FORBES: Magazine Article