Seeing the up-and-rising trend of alternative education, you believe that it has to get started soonest to enjoy the first-mover advantage. However, you don't have enough capital at the moment. You don't have any asset you can use as collateral, either. Therefore, raising fund from both Thai and foreign investors seems to be the priority. At the same time, having a solid team of founding staffs is also of great importance. Although seeing great potential in your business model, most investors are a bit reluctant to invest as co-founders by purchasing shares at the beginning. They have asked you to consider loaning their money first but giving them an option to turn debt into shares at some point.

Will you raise fund by debt or equity? Why? What are the differences? If you decide to raise fund by equity, how would you do it?