Venture-backed founders cite liquidity pressures, AI demands and fundraising strain
Today’s founders appear less motivated by personal wealth than by building businesses with long-term impact, even as they navigate what is described as a more “complex and less forgiving” market environment.
A new survey from Morgan Stanley, based on responses from 150 founders of private companies in the US and Canada that have raised at least a Series A financing round, found that nearly half of respondents said their main reason for launching a company was “to make a difference/have a positive impact,” while only 17% ranked “chance to become wealthy/significantly improve my financial situation” as their top motivation.
The firm said the findings point to founders increasingly balancing growth ambitions with more difficult decisions around capital, liquidity, operational scaling and personal financial planning.
“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.
Revenue expansion
Revenue expansion emerged as the leading business priority, cited by 63% of founders surveyed, while 45% pointed to raising capital as a key concern. Among companies generating more than $100 million in revenue, the emphasis on capital raising climbed to 59%.
Liquidity planning is already central for many respondents. The survey found 62% are considering or planning for an IPO, while 31% are looking at secondary sales and 22% are weighing acquisition opportunities. Most founders pursuing IPOs expect to move within one to two years.
The findings also showed that founders are adapting rather than retreating from difficult fundraising conditions. More than half of respondents said the macroeconomic backdrop has made them more cautious about raising capital, but many are responding by broadening their funding sources, extending their runways and preparing for more investor conversations.
Operational pressure remains intense. Eighty-four percent of founders said they feel continual pressure to make their businesses succeed, while 77% said they often feel like they are “building the plane while flying it.”
Predictable financial performance
Founders identified predictable financial performance as the biggest barrier to liquidity events, ahead of broader market conditions or IPO timing. Nearly half of respondents cited inconsistent financial results as a major obstacle.
The survey also revealed lingering frustration over fundraising decisions. Founders were least satisfied with valuations received, equity dilution and the types of investors they partnered with. One-third said they believe they gave up too much equity during fundraising rounds.
“Negotiating points that feel emotionally important in the moment often don’t drive outcomes as much as speed and partner quality,” one later-stage technology founder said.
Many founders pointed to knowledge gaps during earlier fundraising discussions, especially around dilution, liquidation preferences and investor alignment.
“Every time I take an investment, I give away a piece of my pie. I must be strategic as a smaller piece of a massive pie is also great,” a Series B media and communications founder said.
Artificial intelligence
Artificial intelligence emerged as another major challenge. While 95% of founders agreed AI will be critical to their company’s future success, only 23% said they feel very well supported in keeping up with AI and emerging technologies.
The report also emphasized the growing importance of networks and mentorship, with Morgan Stanley describing trusted relationships as a competitive advantage rather than simply a support system.
Nearly every founder surveyed said they had mentors, and those running larger businesses were more likely to describe mentorship as “very valuable.”
“I wish for a trusted network of mentors who can provide practical guidance on tough decisions regarding funding, scaling and hiring so I can avoid costly mistakes and move faster with confidence,” one later-stage real estate founder said.
The survey further suggested founders are thinking about personal financial planning earlier in the company-building process. More than three-quarters of respondents said working with a single firm for both investment banking and wealth management services would be valuable, reflecting how closely personal wealth has become tied to business outcomes.
Morgan Stanley conducted the study in partnership with research firm 8 Acre Perspective during the first quarter of 2026. Participants included founders with at least 15% ownership stakes in venture-backed companies employing 25 or more people, with 67% of respondents coming from Series C or later-stage businesses.
