There are other options - first of all debt financing. Equity is tricky because of the principal agent problem. The manager or whoever contrlos the company can easily keep the profits low while paying himself or his friends much. There are some ways out:

a) strict management/information rules - so burdensome that it is available only for big companies - i.e. corporations

b) startups with scaling - that is high growth business - where growing is the only option for the manager

c) having a partner with money who takes part in the management