hmmm... thats a good idea. If you're running a profitable business that just wants a little money to grow, and you know you'll be able to pay that back, then debt might just be the better (and lower risk) way to go.

But obviously, lower risk means lower returns. Why else do VCs ask that you have more "traction"? They want lower risk for themselves, yet being able to insure that they'll maximize their returns.

Pretty good deal for the investors, if you ask me.