And how to fix them before your deal gets dismissed.
Raising capital isn’t just about having a good idea or a pretty pitch deck. Funders are looking for signals—both good and bad. And if you’re broadcasting the wrong ones, you’ll get silence, stalls, or outright rejections. These seven mistakes can quietly kill your raise—before it even begins.
đźš©1. Using Raise Proceeds to Repay Yourself or Investors
Funders want to build, not bail out. If you’re allocating raise funds to clean up old issues, you’re broadcasting instability.
âś… DealReady Tip: Restructure past obligations and focus this raise strictly on future growth and returns.
đźš©2. Vague Financials or Missing Assumptions
If your projections are built on hope, lenders can tell.
âś… DealReady Tip: Use clear, testable assumptions and tie them to revenue milestones.
đźš©3. No Clear Exit or Repayment Strategy
“Eventually” isn’t a repayment plan.
✅ DealReady Tip: Show your path to repayment or liquidity, even if it’s years out.
đźš©4. Weak or Incomplete Deck
A beautiful deck with no depth is a liability.
Worse? A cluttered, 30-slide mess that screams disorganized founder.
✅ DealReady Tip: Tell a tight, investor-grade story in 10–14 slides.
Focus on what capital providers actually need to see—not what you hope they’ll ask for.
🚩5. Lack of “Skin in the Game”
Funders want to see that you’ve invested real money, time, or traction.
If you’re asking for $2M but haven’t committed your own resources, the message is clear: you’re not all in.
✅ DealReady Tip: Show traction, assets committed, or milestones already met—even if they’re modest. It proves belief and momentum.
đźš©6. Confusing Ownership Structures or Undisclosed Partners
One messy org chart can end a conversation.
Funders avoid anything that smells like internal conflict or legal risk.
âś… DealReady Tip: Clean up your cap table, clarify ownership, and disclose all stakeholders (even silent ones). Transparency builds trust.
🚩7. “Spray and Pray” Pitching
If you’re sending your deck to everyone you can think of…stop.
Funders know when you’re shopping a deal out of desperation instead of alignment. They talk to each other. And don’t let your broker shop your deal either. If they tout a mailing list of over 700 lenders and investors, run. They are not right for your project.
âś… DealReady Tip: Target aligned capital sources based on stage, sector, and structure.
And make sure your pitch speaks directly to what they’re looking for.
âś… DealReady Tip: And don’t let your broker shop your deal either. If they tout a mailing list of over 700 lenders and investors, run. They are not right for your project.
Are You Broadcasting đźš©Red Flagsđźš© Without Realizing It?
Most sponsors and founders don’t even know they’re doing it. That’s why DealReady™ exists.
We help business owners and real estate sponsors spot the red flags before funders do—then fix them fast.
đźš©Red flagsđźš© are funder repellents.
They can spot them within 30 seconds of opening your file. HOW? because it’s their job and they’ve seen thousands of files. The won’t give you a second look, much less a second chance. So let’s put your best foot forward.
Want to know where you stand?
Take the Capital Readiness Score™—it’s fast, clear, and it might save your deal.
Brought to you by DealReady™ – Capital Empowering Vision™