Blog | Capital Raising in a Changing Market

Securing business growth funding in 2026 and beyond requires more than ambition. It demands financial discipline, risk awareness, and a well-structured proposal. As capital markets adjust to economic volatility, business owners looking to scale, acquire, or expand need to understand how funding expectations have evolved.

The days of raising capital on a pitch deck alone are over. Whether you’re seeking private equity, bank debt, or a strategic partnership, today’s investors want clear financial insight and a plan that holds up under pressure.

Why Capital Isn’t Cheap Anymore

Australia’s private capital landscape has grown rapidly, but it has also matured.

According to Alvarez & Marsal’s Australian Private Debt Report 2025, the local private debt market has expanded to $224 billion in 2025, growing by 9% from 2024. What’s notable is not just the size of the market, but how diversified and institutional it has become.

Capital is coming from a broader base than ever before, including pension funds, insurers, family offices, high-net-worth investors, and offshore institutions. At the same time, increased regulatory and investor focus on governance, structure, and valuation is reshaping how private debt is deployed.

Investor appetite remains strong, but expectations are sharper.

High interest rates, inflation, and post-COVID market adjustments have made funders more cautious. Venture capital is leaning towards later-stage deals with stronger revenue. Private equity is seeking operational efficiency and stable cash flow. Debt markets are active, but lenders are scrutinising leverage and repayment capacity.

What Investors Expect This Year

To raise capital in this market, your business must demonstrate:

  • Cash flow visibility. Investors want to see reliable forecasts and liquidity management.
  • Scalable business models. Growth potential must be backed by infrastructure and market positioning.
  • Operational resilience. Your ability to navigate disruption is now a key investment metric.
  • Strong leadership. Funders back people, not just products. Your executive team must inspire confidence.

At Dillon Clyne, we work closely with founders and management teams to build investor-ready businesses that not only attract capital but also put it to work effectively.

Exploring the Right Funding Path

There is no generic path when it comes to business growth funding. The right path depends on your stage, risk profile, and strategic goals.

  • Private equity. Suitable for businesses ready to scale aggressively, often with a partial exit for founders.
  • Venture capital. A better fit for high-growth, early-stage businesses with significant market disruption potential.
  • Private or venture debt. Provides capital without equity dilution but requires strong financial controls.
  • Family offices and strategic investors. Offer flexible capital and long-term alignment.
  • Mezzanine financing. A hybrid option that blends debt and equity, useful in acquisition or expansion scenarios.

A structured approach is essential. Too often, businesses approach the wrong investor at the wrong time, with underdeveloped materials. That’s where strategic advisory makes a critical difference.

Structuring Deals That Work for Growth

Poorly structured funding can harm long-term value. Equity dilution, restrictive covenants, or mismatched expectations can stall progress later.

We help clients develop capital structures that balance:

  • Ownership and control
  • Debt servicing capability
  • Risk-sharing with investors
  • Long-term profitability and exit strategy

A successful deal is more than just about securing funds. It is about aligning all stakeholders for sustained growth.

Preparing Early Is a Competitive Advantage

Investors move faster with businesses that are ready. Due diligence readiness should start months before a raise, not days.

This includes:

  • Forecasting and budgeting
  • Working capital optimisation
  • Tax-efficient structuring
  • Legal and governance clean-up

Businesses that invest in this groundwork avoid valuation pushbacks, delays, and costly rework.

Why Raises Stall and How Dillon Clyne Helps

Capital raises often stall due to inconsistent messaging, poor financial visibility, or unclear growth plans. Without strategic guidance, businesses waste time chasing uninterested investors or accepting suboptimal terms.

Dillon Clyne specialises in getting businesses capital-ready. Our approach combines real-time financial structuring, deal advisory, and investor communications to help clients get through complex raises with confidence.

Ready to raise capital with confidence?

Partner with Dillon Clyne for a clear strategy, investor-ready financials, and expert deal support that moves the needle. Book a confidential consultation now to get started.

Disclaimer: Please note the information in this article is of a general nature only, you should consult a professional before pursuing your financial decisions.