Building the right capital stack

“Debt doesn’t cap your growth. It enables it when used with purpose.”

That quote encapsulated much of the honest, nuanced conversation we had at our recent event Building The Right Capital Stack, held in collaboration with our trusted partners at OakNorth.

We brought together 18 founders from within our community to dig deep into debt financing - a topic often wrapped in mystery or misunderstood as a last resort. The truth? When approached strategically, it’s a powerful tool to retain control, unlock growth, and stay on your front foot as a founder.

Led by Navin Dabasia and Peter King, Directors of Debt Finance and Business Banking respectively for OakNorth. They shared practical lessons from supporting hundreds of high-growth companies and showed how a lender can act more like a partner and sounding board than an institution.

So what does it take to build the right capital stack?

Here are some key takeaways from the discussion:

• Debt demands sustainability. Diversification across revenue streams, customer base, supplier relationships, and key personnel helps de-risk your business in the eyes of lenders.
  

• Your leadership matters. When things go wrong, lenders look at your management team’s focus and commitment. It’s not just about the numbers - it’s about your plan to course-correct and your resolve to follow through.
  

• Honesty creates opportunity. Openly sharing where you’re struggling allows milestones to be adjusted and collaboration to take place. It’s not a weakness — it’s smart leadership.
  

• Cap tables count. Founders were reminded to never underestimate the weight of their cap table. Too many inactive or misaligned investors can stall future capital conversations - including access to debt.
  

• Performance is the priority. Lenders don’t want control, they want clarity. Be laser-focused on your performance covenants and you’ll unlock debt without diluting ownership.
  

• Purpose is non-negotiable. Debt isn’t a rainy day fund. It needs to have a defined, strategic use, whether for product expansion, acquisition, or scaling operations.
  

• Connections make the difference. “The real value lies in connecting the right dots.” This resonated throughout the session as founders discussed the importance of aligned networks, support systems, and advisory relationships when navigating capital decisions.

Breaking down the myths

One of the most powerful aspects of the event was the space it created for real, and sometimes uncomfortable, talk. Debt doesn’t have to be scary and it’s not just for later-stage businesses. And it doesn’t mean giving up control. When founders understand the landscape and engage with the right partners, debt becomes an enabler rather than a constraint.

Founders left with two clear messages. First, capital is only one side of the equation; clarity, challenge and connections often matter just as much. Second, a banking partner that can provide quick decisions, sector expertise and warm introductions – while basing lending on where you are going, not just where you have been – can be a strategic asset.

If you are exploring the next step in your own capital journey, consider how debt could sit alongside equity to keep momentum and preserve ownership. And when you pick a lender, make sure they bring insight as well as funding. That was the lesson our community carried away from the breakfast table.

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A full recording of the event is now available to watch.