Understanding Common Roadblocks to Capital and How to Break Through Them

Author: Dale W. Wood

I’ve met countless founders who can articulate a brilliant vision but stumble when it comes to actually securing the capital to bring it to life. The reality? Raising money isn’t about having the flashiest deck or the boldest idea; it’s about demonstrating clarity, preparation, and strategic thinking. 

Over the course of two decades as an investor, I’ve witnessed the same roadblocks repeatedly stop promising ventures in their tracks: a narrow funding focus, weak storytelling, unrealistic valuations, and misaligned terms.  

Fortunately, these barriers are predictable, which means they’re also solvable. 

In my latest piece for Business Insider Africa, I walk through the most common obstacles founders face when raising capital and share practical strategies for breaking through each one.  

From diversifying your funding sources to crafting a pitch that tells a story, from grounding your valuation in market reality to negotiating terms that align long-term incentives, it’s all about treating fundraising like the strategic discipline it is. 

Key Takeaways 

1. Don’t hunt with blinders on. Broaden your funding sources beyond VCs to include angels, crowdfunding, and strategic partners. 

2. Make the pitch a story, not a spreadsheet. Lead with a clear value proposition and back it up with data that validates your vision. 

3. Create realistic value. Anchor your valuation in sound projections, market benchmarks, and defensible assumptions. 

4. Negotiate to align incentives. Understand what drives your investors and aim for fair terms that preserve growth optionality. 

5. Treat compliance and process as assets. Good governance and transparent reporting build credibility and lasting investor relationships. 

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Understanding Common Roadblocks to Capital and How to Break Through Them