Cash Flow Confessions: When Good Growth Goes Bad
Growing a million-dollar business takes more than just a great idea. It takes the right kind of funding and a smart approach. In our latest podcast episode, growth strategist and DV8 Ventures founder Diti Sangoi shared what business owners need to know about raising capital the right way.
Diti puts it simply. Capital is king. But not all money is good money. Attracting the right investors means being prepared, thinking long-term, and understanding your business inside and out.
A lot of founders think they need to show big revenue growth to get noticed. But today’s investors are looking for more than fast numbers. They want to see a clear path to profitability. That means a sustainable business model, realistic projections, and smart financial decisions. It is no longer just about how fast you grow. It is about how wisely you grow.
One thing that makes a big difference is storytelling. Investors want to hear why you started your business and how you are solving a real problem. Your pitch should feel honest, not perfect. Diti says founders who can clearly explain their niche, show passion, and build the right team stand out the most.
Timing is another big factor. Many entrepreneurs wait until they are almost out of money before they look for investors. That is a mistake. Diti recommends starting the process at least six months ahead. If you can start even earlier, that is better. This gives you time to prepare your materials, strengthen your numbers, and find the right partners without the pressure of a cash crunch.
It is also important to know what kind of investment you want. A control investment means the investor owns more than half of your business and can make major decisions. If you want to stay in charge, you will want a non-control investment where you keep ownership but still get the capital you need. Either way, it is important to understand the terms. Some deals may look good at first but could limit your future decisions.
Your personal goals matter too. If you want to keep growing and stay involved in the business, growth capital may be the way to go. If you are looking to step away or take some cash off the table, a buyout might be the better fit. This is where having an experienced advisor can help you weigh the pros and cons.
Diti also shares a real example from her own experience. When one of her company’s funding rounds ran into trouble, she shifted gears and explored a strategic exit instead. That decision led to an eight-figure sale to UnitedHealthcare. Sometimes, a well-timed pivot can lead to a better outcome than the original plan.
The main takeaway is simple. Not all growth is good growth. Running out of money is one of the biggest risks for growing businesses. The companies that succeed are the ones that plan ahead, tell their story well, and build relationships that last.
If you are thinking about raising capital, now is the time to start planning. A strong foundation today can set you up for the right opportunities tomorrow.
