While equity financing offers numerous benefits, it also presents several challenges. One major challenge is the pressure to meet shareholders' expectations. Investors typically seek returns on their investments, which can lead to short-term pressures on leaders to deliver quick results. This may sometimes conflict with long-term strategic goals. Another challenge is the potential for conflicts of interest among shareholders, which can complicate decision-making processes and governance. Leaders must also be adept at managing the investor relations to ensure alignment with the company's vision and objectives.