Eight Struggles You May Face When Raising Capital for Your Business

One of the most difficult aspects of getting a business off the ground is finding the money to be able to do so. While there are a number of ways to fund a business — crowdsourcing, family and friends, investors, bootstrapping and more — each comes with their own pros and cons, benefits and challenges, meaning no one business will likely follow the same financial path. 

However, there are a number of similar struggles you may face when trying to raise capital for your business that other seasoned entrepreneurs have also experienced. To share their own stories and advice, eight business leaders of Rolling Stone Culture Council weigh in on common fundraising challenges and what they would advise others do to avoid or overcome the same obstacles they faced themselves.

Proving the Business’s Potential

One struggle I had was proving the business’s potential to skeptical investors. To overcome this, focus on building a solid prototype and collecting compelling data to demonstrate market demand. I’d advise others to also prioritize clear communication of their vision and evidence of traction. This approach helps mitigate doubts and showcases the business’s potential for growth. – Billy Carson, 4biddenknowledge Inc.

Building Relationships With Potential Investors

Backers base decisions on their belief in you as a person as much as, if not more than, their belief in your business model. In other words, a decent business model from someone they know tends to beat a killer idea from a stranger. So, are you talking to people who know you? Are you building relationships in a way where they’re getting to know you better? At the beginning of the startup phase, you are the business. – Jed Brewer, Good Loud Media

Aligning With Others on Your Vision of Success

Consider the authentic alignment (or lack thereof) with your potential investors as you’re pitching. If they have 100 arrows in their quiver (classic venture capital strategy) and you have only one arrow, you may not be aligned with your investors on what a “successful” outcome might entail. Think it through and only take capital from investors who authentically share your vision of a successful future. – Dan Giuliani, Volt Athletics

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Receiving Negative Feedback

Not everyone is going to love your pitch, and that’s OK. Receiving feedback from some of the biggest naysayers in the room can be beneficial for improving your story. It gives you the tools to address similar meetings and concerns and turn the conversation toward discussing how much they should invest rather than defending your pitch. – Michael Klein, cannabisMD

Building Trust

The most critical step to raising capital is raising trust in your business, which I overcame with sheer belief in what we were offering. It also takes accepting that mistakes will be made along the way but understanding that the right investors and clients are out there as long as you maintain integrity for your brand, knowing you’re on the right track. – Cynthia Johnson, Bell + Ivy

Navigating High Interest Rates

One challenge is high interest rates. Most real estate financing is heavy into debt, and only a small amount is equity. Over the next few years, some development loans will need to be renegotiated. Revenues from commercial real estate are smaller now because of work from home, AI and more. Unless debt is renegotiated or interest rates go down, it will become extremely challenging. – Zain Jaffer, Zain Jaffer Foundation

Spending Too Much Time Writing the Pitch

Overthinking, perfectionism and fear of failure or looking foolish can drive people to pitch deck obsession. It’s better to just get out and talk to investors, bankers, founders and others to get feedback. Quantity over quality. Get the word out and get as much feedback as possible. Capital follows. – Sarah DaVanzo, Pierre Fabre

Understanding Your Worth

Know your worth! We always have options, and quite often we sell ourselves short. Whether you are a new business, expanding or pivoting, know the value you bring to the table. You may not have a long history of financials or profit statements, so you may have to get creative with your approach. If you cannot succeed in the traditional way to raise capital, perhaps consider a partnership. – Adrianne Fekete, I Am Unbreakable™ Global Media