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Uzone.id – For startups, capturing the attention of investors has always been a mission. For investors, especially venture capitalists (VCs), hunting potential startups to invest in is also high risk.
That’s why they’re pretty selective in choosing startups, because they are putting their money with the hope of a huge return. For startups, understanding what investors are looking for can help you gain their trust.
Here’s what investors are really looking for in startups when they decide whether or not to put their money into your startup.
Skilled team and visionary leadership
Investors aren’t just investing in your product—they’re investing in your whole part of the company, including your team. Investors usually seek a highly skilled team with experienced technical, business, and industry skills.
It’s not only the team, the leader is the first that can catch your investor’s attention. Investors want to choose leaders that have the skills, determination, and flexibility to guide your company through any challenges.
Brett Plotzker, CEO of Patch said that “investors focus on how well a team works together, their expertise, and how they handle tough questions.”
If you’re pitching alongside a co-founder, make sure you complement each other’s strengths and show that you can work and face challenges together. At the end of the day, investors want to see that the leadership team has what it takes to execute the vision.
“People can have the greatest of ideas or strategies but ultimately it all comes down to how everything is being executed,” said Turbostart.
Clear Path to Growth
Investors want to know how your company plans to scale and how it grows. They will ask you crucial questions, and your response is a real deal.
Lisa Suennen, a longtime Bay Area investor said, “It’s not necessarily a deal killer. But composure and honesty can help make up for the lack of a good answer.”
They’ll ask: Have you thought about things that may be outside your control? Do you have a strategy for reaching more customers and growing revenue? Where and how do you see this business in 3 years?
These questions push you to show them the milestones you plan to hit in the next few years with your company, whether that’s increasing user numbers, launching new features and strategies.
You need to show investors exactly how you use their money how far their money will take your company, and what the value might look like for them in return for investment.
Your power in resilience and adaptability
Startups are one of the industries that face a ton of uncertainty. Investors are looking for founders who can adapt fast when things don’t go according to plan. If you’re resilient, open to feedback, and able to change when necessary, that’s a big plus for investors.
Plotzker explains that investors pay attention to how founders react to tough questions, especially those about challenges they haven’t fully thought through.
“They should just relax, figure out how to be, or at least act, confident,” said Suennen.
These tough questions include numbers. They’ll ask about your financials—current revenue, burn rate (how fast you’re spending cash), and how long your runway (time before you run out of money) is.
By this question, investors want reassurance that their money won’t disappear in a few months but rather will help the company grow sustainably
How big is your potential in the market
Investors also care about whether your startup has a place in the market and how big your company would grab that market.
You’ll often hear terms like “product-market fit,” this means: does your product solve a real problem? Is there a clear demand for it?
Investors aren’t interested in ideas alone—they want to see evidence that people are willing to pay for your solution. These people are particularly attracted to businesses that show early revenue traction, even if it’s modest.
As a result, it is critical to describe the major growth factors you will rely on after you enter the market.
So, that’s four important things you should do to catch investor’s eyes. By keeping these points in mind and refining your pitch, you can set yourself up for success when approaching investors.
