[cjlars]

This is the model for pretty much every new venture that's 'main street' and not 'VC'. There are many times more main street businesses than tech startups. While it's reasonable to bootstrap a sole proprietorship tech services firm from nothing, restaurants need buildouts, HVAC companies need trucks, retail stores need inventory, etc. Equity is absolutely the most expensive form of financing, but the bank ain't touching your new restaurant concept so there's the equilibrium.