I'd rather raise money. For me, startups are all or nothing. I believe focus is critically important to an early stage startup. While splitting time between consulting and your startup gives you a broader view of the world, it spreads you thiner, and means you make less progress with your startup.

I always remember that 100% of nothing is nothing. If you really believe in an idea - enough to spend time on it - raise some money, don't worry that you now own a smaller part of it, and change the world.