In a new report, Morgan Stanley has pointed out the rapidly growing operational and financial challenges that company founders, Mainly working with private companies, encounter when they are growing, raising funds, and planning long-term liquidity.
The focus group of the study was 150 founders of Series A and later-stage private companies throughout the U.S. and Canada. Asking these entrepreneurs to identify their biggest challenges, the survey revealed that most business owners are juggling quite a few major decisions at the same time. Apart from accelerating business growth, they are working on raising capital, preparing for liquidity, recruiting talented people, dealing with ownership issues, and handling personal financial planning, which is sometimes quite complex as the boundaries between business and personal priorities are blurred.
According to the findings, the path to liquidity remains a core objective for many founders, but the process has become far less predictable. Many respondents indicated that early decisions regarding investors, governance, and equity ownership are having lasting implications on their companies’ future flexibility and growth trajectory.
Also Read: Gotransverse Partners With Gibson Quai International to Integrate Monetization With Enterprise Workflows
A companion Morgan Stanley at Work Liquidity Trends survey further suggests that private-company liquidity planning is increasingly viewed as a continuous strategic process rather than a single milestone tied to an IPO or acquisition.
“What comes through in this survey is that founders are not managing one defining challenge at a time. They are making interconnected decisions at a breakneck pace, often under pressure and with implications that extend well beyond the next financing round,” said Mandell Crawley, Chief Client Officer at Morgan Stanley. “We see this in our work with clients through the Integrated Firm. Founders increasingly seek comprehensive solutions throughout the lifecycles of their companies and their personal wealth accumulation, from creation to capital raising to going public and beyond.”
The research identified several major trends shaping the founder experience:
Revenue Growth Remains the Top Priority
Increasing revenue remains the top business priority for founders surveyed, with raising capital efforts coming a close second. In fact, the same data also reveal how demanding being a founder is, as 84% of the respondents declared that they are always under pressure to make their businesses successful.
Deciding on ways to raise capital leads to tradeoffs that affect the future
A lot of founders indicated that they are generally happy with their fundraising results; Yet, issues like valuation, investor alignment, and equity dilution still cause them great concern. About one-third of the participants acknowledged that they thought they had given up too much ownership during fundraising, which shows how decisions around capital structure have a lasting effect.
Operational Readiness Is Key to Liquidity
The survey found that founders increasingly view internal operational execution as a more immediate challenge than external market conditions when preparing for liquidity events. Consistent financial performance and predictable business operations were cited as major factors influencing readiness for IPOs or acquisitions.
Strategic Networks Deliver Competitive Advantage
Most founders rely on a relatively small circle of trusted advisors, including co-founders, executives, and board members. The findings also suggest that access to experienced mentors and strong professional networks correlates with stronger business outcomes, particularly among founders leading larger organizations.
Financial Partners Are Expected to Deliver More Than Capital
Respondents indicated that the most valuable financial partners are those capable of providing strategic access to investors, customers, talent, and experienced operators. Founders also emphasized the importance of responsiveness and deep expertise in equity and liquidity management.
Personal Wealth and Business Planning Are Increasingly Connected
The study revealed that founders are increasingly treating personal wealth planning and company growth as interconnected priorities. Many respondents expressed interest in working with a single financial institution capable of supporting both corporate and personal financial needs throughout the company lifecycle.
The survey also found significant gaps in support when it comes to the adoption of emerging technologies. For instance, a vast majority (95%) of startup founders consider AI essential for their future success. Though, very few (just 23%) of them feel ‘highly supported’ when it comes to integrating AI or handling AI-related strategies, which actually marks it as the least supported area in the research.
The study results were published by Morgan Stanley in connection with its first ever Founders Summit, which is a gathering of private company founders geared towards discussing issues of business scaling, capital raising, leadership, and long-term liquidity strategies.
