Build It: Navigating the High Stakes of Startup Funding with Brian Yurachek
Welcome back, fashion tech enthusiasts!
Entrepreneurs often pour their hearts, time, and savings into launching their ventures, but what happens when that dream is derailed by fraud? Brian Yurachek, founder and CEO of New York Culture Club, learned this the hard way. In this second chapter of Brian Yurachek’s entrepreneurial journey, he shares how he became the target of an advance-fee scam while trying to secure a business loan. His experience is a sobering reminder of just how vulnerable even the most prepared founders can be.
Listen to the full conversation:
The High Stakes of Startup Funding
Finding funding as a startup founder can feel like steering a tiny ship through stormy waters. You're driven by passion and urgency, but the pressure to secure capital quickly can blur judgment, and unfortunately, that makes young businesses vulnerable.
In fact, according to the Federal Trade Commission, small businesses reported over $500 million in fraud losses in 2023 alone, with many falling victim to sophisticated financial scams.
Brian Yurachek learned this the hard way. While pursuing a loan to support his growing brand, he was caught in an advance-fee scam that targeted the exact pain points so many entrepreneurs face: limited credit history, tight timelines, and high emotional stakes. His experience, though painful, serves as a wake-up call. The emotional impact, ranging from frustration to deep self-doubt, reminds us that startup funding isn't just numbers on a spreadsheet; it's a personal matter.
For entrepreneurs, especially those bootstrapping their way forward, maintaining vigilance is non-negotiable. Brian emphasises the importance of asking direct questions and never hesitating to verify legitimacy, no matter how urgent the opportunity seems. From researching license databases to utilising fraud detection software, the tools are readily available. But even then, trust shouldn't come easily.
“If money needs to be held in escrow or there’s any kind of cloudiness involved,” he warns, “you need to double-check everything—talk to banks, confirm identities, get on the phone.”
Fundraising With Clarity
Financial scammers often exploit the enthusiasm and inexperience of early-stage founders. In an environment where nearly 90% of startups fail—often due to poor financial management or missteps in funding—being cautious isn't a weakness. It's a necessity. Scams can derail even the most promising ventures, but they can also be powerful lessons in resilience and strategy.
Brian also emphasizes the importance of processing difficult moments privately before sharing them. Public vulnerability can be powerful, but only after reflection and clarity have been achieved. When funding plans collapse, when trust is broken, or when mistakes are made, entrepreneurs need space to regroup—then share from a place of strength. He took the time after the scam to process and regroup before returning to his team, feeling stronger and more capable of pushing forward.
He offers a reminder to focus on building value rather than chasing validation. Emerging technologies like blockchain and NFTs are changing the way startups can raise money, offering decentralized and community-driven alternatives to traditional VC paths. Still, no matter the medium, due diligence and strategic patience are crucial. Hype is never a substitute for clarity.
Building your Defense Against Financial Scams
His advice to other founders is straightforward but vital:
Get someone credible on the phone.
Ask questions early, and ask a lot of them.
Lean on your network for insight.
Search online reviews, cross-check emails and licenses, and use verification software.
And if a deal feels off, trust your gut.
Cash flow remains the lifeblood of any startup. And while it's easy to romanticize the entrepreneurial journey, stories like Brian's remind us that the road to building something meaningful will be filled with both opportunity and risk.
As one mentor once told him, “There are going to be a lot of scary people who come out of the woods on your hero’s journey. But don’t let that fear steer you off course.”
Want to Learn More and Connect?
If you're curious about the intersection of fashion, technology, and cultural storytelling, explore how Brian Yurachek and New York Culture Club are building tools for a more interactive, transparent future. Visit nycultureclub.com to learn more about their latest projects and collaborations.
Connect with Brian Yurachek on LinkedIn to follow his work.
