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Several years ago, I worked with a B2B hardware and software company focused on keeping blue-collar workers safe. The mission was meaningful, the team was brilliant, and the technology had real potential to make an impact.
They had just raised a large round of capital internally. It was a big milestone. The founders had poured years into building the product, and investors saw the same potential they did. On paper, everything looked ready for a breakout year.
Then it all unraveled.
The money was gone within twelve months. Not stolen, not wasted, just scattered. Everyone in the company was spending to pursue their own priorities, chasing their own version of what success looked like. There was no shared plan, no consistent accountability, and no process for how work got done.
Customer contracts were signed but went unfulfilled. Promises were made, but no one was clear on who owned delivery. The company was filled with creative, well-intentioned people who loved the mission, but there was no structure to align them.
They weren’t short on ideas or talent. They were short on clarity.
When a company raises a large round of capital, it often feels like freedom. Finally, there’s breathing room. Finally, there’s fuel to go faster.
But without alignment, capital accelerates chaos.
In this case, the leadership team lacked a shared plan for how the money would be used and what success would look like in the next twelve months. They were brilliant product developers and strong marketers, but they hadn’t built the muscle of operational execution.
Every meeting was reactive. Everyone was busy. And because there was no clear ownership structure, small issues snowballed into systemic problems.
By the time the leadership team realized what had happened, the cash was gone.
They had to take a last-resort investment to keep the business alive. The recap diluted the founders’ ownership and forced them to give up control of something deeply personal. It wasn’t just a financial loss. It was an emotional one.
It all happened fast, but it had been building for a long time.
Looking back, the warning signs were all there.
We didn’t have an accountability chart, so no one truly knew who owned what. We didn’t have documented processes, so every customer experience was a little different. We didn’t have a scorecard that showed leading indicators, so we were always reacting to problems after they happened instead of anticipating them.
The team was operating from good intentions, not shared priorities.
Had we stopped to create structure before the capital raise—had we slowed down long enough to align on ownership, process, and measurables—we might have avoided the outcome entirely.
Because raising capital doesn’t make a business ready for growth. Running a healthy business does.
This is where the Entrepreneurial Operating System (EOS) becomes so powerful. It builds clarity before capital.
The accountability chart forces alignment around roles and responsibilities. The scorecard creates visibility into what’s actually working and where you’re drifting. Documented processes make consistency possible so that execution scales with the business.
EOS gives leadership teams a shared language and rhythm for decision-making. It replaces reaction with preparation. It builds the discipline to operate with focus and transparency—the same things investors look for when they evaluate opportunities.
Investors fund confidence, and confidence comes from predictability. EOS creates that predictability from the inside out.
As an investor, I’ve learned that capital readiness is rarely about the pitch deck, the product, or even the financial model. It’s about alignment.
It’s about a leadership team that can clearly articulate where they are going, how they’ll get there, and what success looks like.
It’s about having a rhythm for accountability, a structure for decision-making, and a culture that can execute with consistency.
This company didn’t fail because they lacked vision. They failed because they couldn’t bring that vision down to the ground and execute with wisdom and grace.
Clarity isn’t a luxury. It’s a requirement for growth.
If you are preparing to raise capital, take a moment to pause before you move forward. Ask yourself and your leadership team:
Are we aligned on what success really looks like?
Do we know who owns what?
Do we have a system that helps us anticipate issues before they happen?
If the answer to any of those questions is uncertain, then you’re not ready to raise. Not yet.
The best founders earn capital before they raise it by running their business as if investors were already inside the room.
EOS gives you that structure. It helps you and your team make decisions faster, execute smarter, and build the kind of healthy organization that capital—and talent—want to be part of.
If you are ready to prepare your business for what’s next, book a conversation with Mark Accomando to learn how EOS can help your team focus, align, and build the confidence investors look for.
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