What It Really Takes to Raise Capital in 2025 (And Why It’s Harder Than Ever)
Fundraising in 2025 isn’t just tough. It’s humbling. And if you’re an early-stage founder, chances are you’ve already felt that in your bones.
In this week’s episode, I sat down with someone who’s been on every side of the table—operator, investor, and advisor—Steve Young, partner at Manna Tree. I’ve known Steve for years, and he’s one of those people who cuts through the noise. No fluff. No posturing. Just straight talk about what’s working, what’s not, and what’s changed in this new era of capital.
The Truth: The Well Isn’t Dry—It’s Just Deeper Than It Used to Be
If you’ve been out raising lately, you’ve probably heard this narrative: No one’s writing checks right now.
But that’s not the full story.
As Steve puts it, “There’s still money. But it’s not going to brands that don’t have their house in order.” Investors aren’t just looking at the pitch deck anymore—they’re looking at fundamentals. Do your margins make sense? Are customers coming back? Is there real evidence of traction, or are you banking on vibes and velocity?
For the first time in a long time, unit economics are sexy again.
About Steve Young
Steve Young is a Partner at Manna Tree, a mission-driven investment firm focused on improving human health through nutrition. With a background as an operator and investor, Steve brings a unique perspective to the founder experience—and he’s one of the most insightful, grounded people I’ve had the privilege of learning from.
What Today’s Investors Actually Want
If you're building a CPG brand and trying to raise, here’s what matters more than ever:
A tight, focused brand with a clear edge in a noisy category
Strong gross margins and the discipline to grow without overspending
Proof of consumer love: repeat purchase data, velocity, or sell-through
A founder who knows the business inside and out—and can evolve with it
A plan for where this all goes, not just what’s happening now
Steve’s advice? Cut the “spray and pray” approach. Be deliberate. Build real relationships long before you need the capital.
This Is a Human Business
One of the most powerful moments in our conversation came when Steve said, “I’m a person. I have a family. I have goals just like you.”
It’s easy to forget that behind every investment is a human being trying to make the right bet—and to avoid the wrong one.
The takeaway here is simple: when you pitch, don’t just perform. Connect. Help the investor see your long game. Help them trust you’re the one who can lead this brand, not just today, but through what’s coming next.
Focus Is the New Flex
We also talked about something I see a lot: brands trying to do too much, too soon. Multi-channel. Multi-category. Multi-mission.
Steve didn’t mince words: “You can’t fight a multi-front war.”
His advice? Find one battle. Win it. Then scale. The fastest way to do more is to do less.
Raising Capital Is Not a Validation Exercise
Something else that stood out was Steve’s take on founder psychology. Too many founders use fundraising as a proxy for validation. But raising capital doesn’t mean you’re on the right path. It just means someone bet on your potential.
Execution is what proves you right.
What You’ll Take Away from This Episode
If you’re in the weeds of your raise—or preparing for one—this episode will leave you with tactical clarity and emotional perspective. We talk about:
Why raising money is harder, but also healthier, than it used to be
What seasoned investors are prioritizing in 2025 (and what turns them off)
How to avoid common founder pitfalls—from premature scaling to inflated valuations
Why being coachable and focused might matter more than your topline growth
How to stand out in a time when everyone’s trying to raise from the same few funds
Steve doesn’t just share investor insights. He reminds us that building a business is personal. It takes grit, humility, and the willingness to evolve—especially when the market isn’t giving you easy wins.
