The Fundraising Reality Check with Indira Thambiah
When Indira Thambiah walks into a room, she brings three decades of hard-earned wisdom from the trenches of businesses across the world. As CEO and senior executive of family and PE owned businesses, such as C P Hart in London and Zulily in the US, and a portfolio NED to family office backed Vivobarefoot and before that at Superdry, she’s seen fundraising from every angle. The euphoric IPOs, the messy turnarounds, and everything in between. In a recent workshop with our members, she laid bare the uncomfortable truths about raising capital that most founders discover too late.
Raise When You Don’t Need It
“The most power you have is when you’re on plan,” Indira shared. “When you’re running out of money and you really need the funding, you end up in a situation where it’s either lose your business or sign this deal.” She’s watched founders go from controlling a majority stake in their company to just 12-15% in under a year when desperation drives important decisions.
The founders in the room ranged from a 20-year-old service business to consumer brands breaking into major retailers. Most of them were in the sweet spot: generating revenue, approaching profitability, looking for growth capital rather than survival funding. This, Indira confirmed, is exactly where you want to be.
But what if you aren’t? Sometimes, fundraising is essential and time critical. In those cases, it’s all about who you trust.
Not All Money Is Created Equal
Indira splits the investor landscape into two camps: evergreen capital such as government backed funds or family offices and fund-based capital. The difference is critical.
Fund-based investors operate on a clock. They’ve raised £100 million with maybe ten investments and need exits within 5-7 years. “If you show signs of being the superstar, you get pushed to go further, faster,” she warned. “That can derail businesses really, really quickly.” One founder relayed the story of landing a huge contract with a large multi site retailer. It seemed like the ultimate prize, but it turned out the operational cost to serve the customer was greater than the margins made. Evergreen capital can be far more patient. They’re not racing against fund timelines or pressure from limited partners. “They never run out of money,” Indira noted.
The Due Diligence Nobody Does
Here’s what shocked Indira most in 15 years of working with private equity: “How little due diligence the founders do on the fund.”
She rarely sees founders call the CEOs of other portfolio companies to ask about their experience. “Everyone’s trying to raise funding, and you don’t want to upset the apple cart.” But this can backfire. Use your networks, attend forums, find those founders. Get their side of the story, ideally informally, before signing anything.
One member shared they’d built an entire database of SEIS and EIS investors. Angels to family offices to early-stage VCs, complete with contact names, cheque sizes, and recent deal flow. This detective work is essential on your fundraising journey. There’s no magic directory. You have to build your own.
What They Don’t Tell You About Taking Money
For many founders, the main stumbling block is the cultural shift after fundraising. Understanding where you fit in an investor’s portfolio changes everything. Are you one of six steady performers getting minimal interference? Or are you flagged as either a potential superstar or a problem child? Both extremes demand intense attention that can destabilise a small team.
“Think about whether you just want the money or something else,” Indira advised. Some investors go beyond the capital and offer strategic or specialist help, such as brand or digital marketing . This sounds appealing until you realise that the phone never stops ringing. For a founder without a huge team to field investor calls, this can become suffocating.
Protect Yourself Before You Need It
The shareholder agreement is your only defence. “You never want to take a contract out, but if you do, make sure it’s watertight.” Define what investors can veto, what they vote on, and what they get no say on whatsoever. Anti-dilution mechanisms can protect founders from slipping below critical ownership thresholds.
Another founder asked about clever protective measures. Beyond anti-dilution, controls are king. One founder Indira had worked with insisted the company’s head office never move more than 30 miles from his hometown, because his kids were in school there and so a change of location would have made his business untenable. Different things matter to different people. Write yours down.
The Bottom Line
Positive news from the recent budget: SEIS and employee limits have been increased – which appears to have “slipped under the radar,” according to Indira. For qualifying businesses, these tax advantages can be significant.
But the real lesson? Start researching investors now, even if you’re not raising for another year. Build your database, make those calls, understand exactly what you’re signing up for. Because once you take someone else’s money, your business and your life fundamentally change.
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A huge thank you to Indira for hosting this session and sharing her invaluable insights on the 2026 funding landscape. If more workshops like these, or 1-2-1 sessions with Indira might benefit your business, click here to find out more about our memberships and sign up to join the UK’s most accessible network for founders and CEOs.
