Maybe, but all businesses begin as "startups." I guess getting a lot of outside financing is a big deal. Most companies that I know, don't get investors, until they are a going concern. They usually have a bank loan, to start (which can be burdensome).

I used to work for a 100-year-old Japanese corporation. They absolutely refused to go into debt, or seek investors. It could be challenging, getting them to loosen their pursestrings.

But they survived depressions, recessions, and even being bombed in WWII. They had a massive implosion, a few years back, that would have killed most companies (it resulted in me being laid off), but it looks like they are getting their feet under them again.

I guess the problem is what if your competitor does take on that debt, and uses it effectively to put you out of business. Whether the competitor survives much beyond that is immaterial if your company has already closed.