Hi there – first thing I consider is really the needs and problems you are looking to solve of the customers in your target market, cash in the form of revenue generated from solving their problems is the best form of validation for your business.

If you need ‘capital’ to open up the market and / or create some assets – then yes, where is the source or best source to get this from (other than customers) – MSD is as you know, a rule driven organisation, if you fit the criteria then you can get some funding, albeit it takes some time from what I know – this programme is if you already on a benefit – https://www.workandincome.govt.nz/products/a-z-benefits/self-employment-start-up-payment.html – but it is up to $10k startup funding, not sure there are other schemes at higher levels?

There is the small business IRD loan, and then there are commercial loans including the business finance guarantee scheme – but the decisions are based on ‘commercial lending basis’ and I would think they will struggle with funding a startup (other than the IRD loan).

I know this does not really answer your structure questions – my over-riding thought is focus on customers, and their needs – and if you have to compromise to get funding from other sources, just make sure it is not going to completely distract you from your market.