Should you raise debt or equity?

Take whichever route is faster -- and you'll only be able to determine that once you're on the road. I think the pros and cons of either approach are probably a wash.

On one hand, it is more work to close and manage more investors who are each putting in small amounts. But it is also tougher for multiple investors to send a single coherent signal that influences your next round of financing negatively.

On the other hand, it is harder to get big checks from a few investors. But once they are sold, getting a bigger check may be better because they will be more likely to help since they are more invested.