Every business idea can appear impressive on paper, but investors usually ask for more than figures. They are drawn to a personal story that reveals genuine motivation behind the venture. This extra layer of insight can hold their attention and prompt them to examine your concept in greater detail. A well-told account can also illustrate how real-life experiences led to the creation of your service or product.
Founders who share real examples of obstacles they battled or personal experiences that informed their product can set themselves apart. This human element resonates more strongly than a list of statistics. Facts are necessary, but they do not convey the passion or resourcefulness behind the brand. Investors often remember a relatable story long after raw data is forgotten.
It helps to practise your core message with reliable friends or mentors and gather sincere feedback. Try to pinpoint any confusing parts in your storyline and rework them until they flow naturally. Investing time in this process leads to greater confidence when you finally stand in front of decision-makers. Polishing your narrative can make your entire pitch feel more authentic.
How Do They Examine Your Concept And Team?
Those who fund new ventures look at a number of factors. They will look at your target market, what sets your product apart, and how tough the competition is. They also ask how soon you plan to generate revenue. Clear answers in these areas establish faith in your vision and indicate that you understand your market thoroughly. Being well-prepared allows you to respond convincingly.
They pay special attention to the people behind the idea. A team that shows expertise, cooperation, and adaptability tends to impress. If you have weaknesses in technical knowledge or management, an honest plan to fix those gaps can be reassuring, since it shows you understand your own limitations. On many occasions, the right mix of individuals can make up for any single shortfall.
What Are Investors Hoping To See In Your Growth Plan?
Preparation for bigger reach is usually a big topic. Many want to know if you can serve more customers without losing quality. It helps to have roadmaps for production, sales channels, and marketing, so they see that expansion is more than wishful thinking. When you provide details on how resources will be allocated, you indicate foresight and readiness.
A well-laid-out financial plan is equally important. Show how revenue might grow and where outside cash will go. If you have done small tests or pilot runs, include those details and explain what they taught you about your audience. This kind of information builds trust and reduces guesswork. In addition, it demonstrates that you are learning from real data rather than guessing.
When Might You Be Ready To Seek Funding?
Many assume a bright concept is all they need, but finances often demand proof of genuine interest from customers. Early transactions or pilot programs show that people value your idea and are willing to pay. This signals real promise and assures investors that you have tested your concept. Gathering these signs of market traction can also strengthen your negotiating position.
They also weigh how well you and your partners can handle bigger responsibilities. If there is no operational plan, they may question why money is needed at this stage. People who map out each step, from staffing to product updates, tend to appear far more serious about progress. That sense of forethought can help them trust you with sizeable funds.
Some choose to wait until they have consistent sales or endorsements from industry experts. These achievements reduce doubts about the business model and show that your team can deliver. When you reach that point, it often becomes easier to persuade outside parties that your venture deserves their backing. Solid results speak louder than vague predictions.
Industry Leaders Share Their Expectations
Experts have also given tips and insight on what UK startups should think of to make a good impression on VCs as well as investors…
Our Experts:
- Dr. Diana Röttger, Principal, APEX Ventures
- Ivan Nikkhoo, Managing Partner, Navigate Ventures
- Sam Lenehan, Group Managing Director, KOMI Group
- Alan Jones, Co-Founder & CEO, YEO Messaging
- Nimesh Shah, COO, Feel Good Contacts
Dr. Diana Röttger, Principal, APEX Ventures
“In the health and bio space, beyond having a strong scientific value proposition, early traction with relevant industry players—such as pharma companies, insurers, or healthcare providers—is critical. Partnerships or endorsements from these stakeholders not only validate the solution’s potential but also signal its viability within the complex healthcare ecosystem. Demonstrating how your innovation fits into their workflows or solves a key pain point can significantly strengthen investor confidence.”
Ivan Nikkhoo, Managing Partner, Navigate Ventures
Always Be Honest & Accurate When It Comes to Fundamentals and Unit Economics
“VCs prioritise maximising returns on their investments, which requires complete confidence in a company’s business model, financial feasibility and growth strategy. While founders may be tempted to present an overly optimistic view of their company’s potential, doing so can backfire. Exaggerated and inaccurate projections undermine credibility and damage investor relationships over time. The goal should always be to exceed expectations.
“Honesty and transparency are essential for building trust between founders and investors. Things always go wrong in one way or another during the life cycle of a startup. The important factor is being upfront, managing expectations, and figuring out how to fix the issues. When VCs can rely on accurate, uptodate and realistic information, they’re more likely to provide continued support through a company’s growth journey, including navigating challenges. Trust is fostered when founders present achievable projections and openly address potential risks and uncertainties.”
Demonstrate customer traction
“Investors typically prioritise ventures with a clear and actionable growth strategy. It’s not enough to simply have a plan—founders must demonstrate tangible traction with customers. For consumer-focused businesses, this means showcasing significant user numbers, while B2B startups should highlight prominent, referenceable enterprise use cases to build credibility.”
Sam Lenehan, Group Managing Director, KOMI Group
“When preparing for an investment, a clear and simple proposition that quickly addresses a legitimate need in the market is key. That way, investors can easily identify the problem, and how your business is going to solve it.
“Securing investment is competitive. So you must give investors a reason to be excited, show them how your product or business can solve a problem in a way that is either faster, cheaper or higher quality than what is currently available. Show them your unfair advantage over your competitors.
“Present investors with a well thought out plan that will provide the foundations for creating sustainable, cash-backed, and profitable growth. Focusing on an adjusted ebitda is not enough on its own.
“Don’t hide from the risks. To stand out, demonstrate that you know what the risks are, and that you are well-prepared to mitigate them wherever possible. Nothing is ever certain, so show potential investors how you would prepare for the downside as well as the upside.
“Finally, the importance of passion about your product or business cannot be underestimated. Investors want to back those that are truly inspired by what they are doing – if you don’t care about your product then neither will your customers.”
Alan Jones, Co-Founder & CEO, YEO Messaging
“UK investors and VCs are looking for passionate founders who truly understand the problem they’re solving and can articulate a clear vision for their business solution. However, passion alone isn’t enough. Founders must come prepared, truly understand their product, competition and market while having researched the investor to ensure alignment and show they’re serious about the partnership.
“While many VCs claim to focus on early-stage startups, the reality is that most still expect some level of traction, early repetetive revenue or contracted customers underpinning a proven path to monetisation. Scalability and is another key factor; investors want to see that the business has clear growth potential and a solid strategy to capture market share in more than one market sector.
“Ultimately, it’s about a combination of passion, preparation, and proof. Investors aren’t just backing a business; they’re backing a founder’s ability to adapt, lead, and deliver results.”
Nimesh Shah, COO, Feel Good Contacts
“The UK’s startup scene is flourishing, presenting opportunities and challenges for entrepreneurs seeking investment. It is crucial for entrepreneurs to understand what investors are looking for to transform big ideas into successful businesses. Key factors that UK investors consider when evaluating startups include market potential and the strength of leadership. Here’s a closer look at what investors seek in startups poised for success.
“Scalability and innovation: UK investors are focused on startups with scalable business models and innovative solutions that solve real-world problems. Businesses with a broader vision, unique selling point(s) (USPs) and the ability to disrupt their industry are more likely to secure funding. With the UK’s strong emphasis on technology and green innovation, these sectors often gain significant attention.
“Investors want to see the confidence and vision of moving prospects to conversions. They are also particularly interested in whether a businessman has knowledge and can target diversity, such as the different customer segments and points of action. They also want to see less barriers and a relatively uncomplicated process for converting clients.
“Market potential in the UK landscape: Investors prefer startups targeting sectors with strong UK market growth, such as fintech, healthcare, and sustainability. A clear understanding of the local market landscape, consumer needs, and opportunities for expansion into international markets is critical.
“Leadership and vision: Behind every successful startup is a strong, experienced, and resilient team along with a motivated leader. UK investors pay close attention to the leadership’s ability to execute the business plan and adapt to challenges.
“Investors in the UK want more than a great idea – they want a team they can trust to deliver results. Leadership with industry expertise and a clear vision inspires confidence.
“A good fit for investors‘ investment philosophy: VCs are looking for companies that fit their investment philosophy and complement their portfolio and brand. This isn’t because they are snooty or overly selective; it’s actually a benefit to the companies they back. By choosing investments that fit their investment philosophy, they are able to concentrate their mentorship in industries in which they have the most experience. This means they’re looking for a business to which they can best add strategic value.
Risk management and exit strategy: Investors in the UK are cautious yet optimistic.
“UK investors believe in the phrase ‘hope for the best, prepare for the worst.’ They want assurance that a startup is built for long-term success. A well-thought-out exit strategy demonstrates that the founders are focused on more than just short-term gains.
“Sustainability and social impact: With a growing emphasis on environmental and social responsibility, startups that align with sustainability goals and address societal challenges often stand out. Businesses that embrace ethical practices and demonstrate a positive impact on communities are increasingly attractive to UK investors.
“For startups in the UK looking to expand their operations and attract more investments, it is vital to understand and meet the expectations of potential investors. Fulfilling these expectations not only plays a pivotal role in securing the necessary funding but also lays the groundwork for long-term success and growth. By demonstrating a clear vision, a solid business model, and a commitment to innovation, startups can build investor confidence and position themselves for a prosperous future.”
