Founders share how they gained funding for their business

Access to capital is not the main problem facing Scotland’s founders, but navigating the funding journey remains one of the most difficult parts of building a business, with timing, preparation, investor fit and founder ambition all shaping whether companies secure the backing they need to grow.

David Monaghan - DPM Creative Media

That was the central message from the founders panel at Insider’s Scottish Growth Agenda breakfast, where entrepreneurs and advisers shared first-hand accounts of raising money at different stages of growth.

Across the discussion, one theme came through repeatedly, namely that capital exists, but founders need to understand what type of funding suits their business, when to begin the process and how to prepare for the scrutiny that comes with it.

Sehar Shahid said Glasgow online pharmacy, 24 HR Pharmacy, was built initially through personal funds and debt finance, including support from the Start Up Loans scheme and DSL Business Finance.

For an early-stage business still proving its model, she said debt was the most realistic route.

She said: “I think there’s a lack of knowledge as a founder of what the options are. You’re only taking debt finance because it’s easier, it’s quicker.

“At that stage, equity wasn’t right because the business was in its infancy. We had real setbacks with technology, our original web development delayed everything and pushed back revenue, but going through that has left us with a much stronger platform and in a better position now as we look at equity funding to scale.”

Johnny Manning outlined a more complex journey at EV charging installation firm Connekt EV charging, involving five fundraising rounds in four years across grant, debt and equity funding.

Operating in a capital-intensive sector, he said the East Kilbride business had to build credibility in stages.

He said: “You have to build the foundations of the business and of credibility to match the size of the funds that you’re looking for. A pitch deck and belief might get you early funding, but when you’re asking for £20 million, that’s not enough.

“Different investors back different things. Early on they’re buying into you and the idea, but later they want to see traction, a strong team and delivery.

“We had one round that was really difficult with inexperienced investors and delays, it put huge pressure on the business and showed how important it is to choose the right investors.”

Alex Barron of Glasgow-based marketing technology platform Triyit added another dimension to the discussion, arguing that funding conversations are shaped not just by business performance but by the scale of the story founders tell.

He said a key shift for Triyit came when the business uncovered a recurring revenue model, which changed the investment case by increasing the size of the opportunity and forcing the company to think more aggressively about growth.

Alex, who has raised money in Scotland and London said one of the biggest differences between markets is not the quality of founders or businesses, but mindset.

“It is really easy to get conditioned by pessimism. It’s a great place to start a business and there is so much support, but there is a mentality that restricts how big you picture this.

“When you go outside of Scotland, that can become quite detrimental. The businesses aren’t better, but founders are conditioned to think bigger and go after larger outcomes, and that impacts how you’re valued and how you pitch for bigger rounds.”

Veteran entrepreneur Brian Williamson and co-owner of Stirling business consultancy Tiger Industries brought the perspective of a founder who has raised funding, grown businesses and exited more than once.

He said one of the biggest mistakes founders make is leaving fundraising too late.

He said: “If you can see the end of your cash runway, you’re probably too late. Investors want to see momentum and confidence, not panic at wages at the end of the month.

“Trust with investors doesn’t happen overnight, in one of my businesses it took nearly two years from first pitch to investment.

“Founders often lead with instinct, but investors want logic, so you have to clearly show how capital changes the outcome and how the business scales.”

Partner at Glasgow-based Harper Macleod, Paula Skinner, said that distinction often shows up most clearly during diligence and negotiation.

She said the companies that raise smoothly are usually not better businesses, but better prepared ones.

“The businesses that struggle are not bad businesses, they’re just not prepared, she added.

“If you’re trying to run the business while answering diligence requests and negotiating terms, that’s too much for any one person.

“The ones that succeed have the right team around them, they understand what’s coming, and they’re ready to move quickly when investors engage.

“Founders also focus too much on valuation, governance, board composition and control rights matter just as much, and you can lose control of a business even with a majority stake if you don’t understand how those structures work.”

The panel agreed that Scotland’s funding ecosystem is active, and there is support for businesses at different stages.

But raising capital remains a demanding process that requires early preparation, the right relationships and a clear understanding of what each type of funder is looking for.

For founders, the challenge is not simply finding money, it is knowing how to present the business, when to start the conversation and how to structure a deal that supports growth without storing up problems later.

Fragmented funding ecosystem a challenge for founders

Scotland’s funding ecosystem may be well developed, but founders said navigating it remains inefficient and overly fragmented.

Sehar Shahid of 24 HR Pharmacy pointed to the difficulty of accessing clear, joined-up information on funding options at different stages of growth, describing a process where founders are often passed between organisations without clear direction.

She said the lack of a single, centralised source of guidance can slow decision-making and add unnecessary pressure at critical moments in a company’s development.

The issue reflects a wider disconnect between the availability of funding and the accessibility of it in practice.

While agencies, lenders and investors each play a role, founders suggested the system is not always aligned from a user perspective.

The panel indicated that improving coordination, particularly around early-stage guidance, could help founders make more informed decisions, move faster and avoid pursuing unsuitable funding routes.

For scaling businesses, the challenge is not just securing capital, but navigating a system that can still feel complex despite the level of support available.

Five lessons from the founders panel

Founders and advisers on the panel pointed to five clear lessons for businesses preparing to raise capital.

Start early

Investor trust takes time to build and fundraising becomes much harder when cash is already running low.

Match the capital to the stage

Debt, grants and equity all have their place, but not every option suits every business at every point.

Preparation matters

Strong businesses can still struggle if they are not ready for diligence and negotiation.

Choose investors carefully

Poor fit or inexperience can create delays and major stress.

Think beyond valuation

Governance, board control and deal terms can shape the future of the business just as much as the headline number.