In the world of corporate finance, fundraisers are often seen as the crucial bridge connecting companies to capital. However, beneath this seemingly supportive role lies a harsher reality—many fundraisers operate with a strategy aimed at pushing companies into desperation. This tactic seeks to lower the company’s bargaining power, coercing promoters into accepting harsh, one-sided deals that disproportionately benefit lenders while jeopardizing the borrower’s long-term viability.

When companies face pressing financial needs, fundraisers may deliberately delay or complicate the funding process. This creates an atmosphere of urgency and panic, eroding the promoter’s ability to negotiate fair terms. By the time funds are finally offered, it is often at draconian interest rates, excessive collateral demands, or equity dilution well beyond reasonable levels.

Such practices reflect a misalignment of incentives where the fundraiser’s primary goal is their own commission or maintaining lender relationships, rather than truly supporting the growth and health of the company. The borrower, left vulnerable, may be cornered into agreements that stifle innovation, reduce control, and burden the company with unsustainable financial obligations.

This approach is detrimental not just to individual companies but to the broader economy. When promoters are forced into unfavorable deals, their capacity to grow, create jobs, and contribute to economic progress diminishes. It is a lose-lose scenario disguised as a transactional necessity.

Transparency, accountability, and fair negotiation must become the norm in fundraising. Companies deserve fundraisers who act as genuine partners—facilitating timely access to capital on terms that reflect mutual benefit, not exploitation.

The real intention behind fundraising should be to empower, not to exploit. It is time for companies and regulators alike to demand greater ethics and fairness in the capital-raising ecosystem.