Is it better to raise funds via convertible debt or equity?

The exact answer depends on jurisdiction, timeframe and offer condition. Keep in mind that in most developed countries, raising funds or more precised, seeking investors is tightly controlled whereas debt is less onerous (securities laws). Hence documentation and due diligence can be abbreviated which translate into shorter rounds and lower legal bills. The counter is that debt usually ranks higher in terms of liquidation, especially if secured over assets and the key sticky question is the conversion rate (and implicitly the interim interest). Note that equity is the most expensive financing as you are surrendering control so the debt-equity swap merely defers some key questions. Some angel investors don't believe in the holding pattern and prefer a proper priced rounded and a certain yes/no. As for the questions, there are usually a lot but it boils down to are people willing to pay credit card charges ~20% pa in the belief they can create value in their startup faster? And note that 20% is relatively cheap, during the financial crisis private financing hit rates of 90%+ ...