Starting a company is tricky. You’re entering a highly competitive environment, no matter what your niche. Even if you believe you’ve built something unique, the real challenge is hitting the market first. According to established marketing principles, companies that enter the market early with innovative solutions often dominate for a time.
But even if you’re first to market, competitors will emerge—it’s inevitable. What sets successful startups apart is how quickly they can capture market share. To do that, they need resources, especially funding. While acquiring customers and building traction, startups often find they need additional capital to sustain growth and scale effectively.
So, is your company truly investable, or is it simply a solid business? Here are the critical areas investors assess before deciding to fund a startup:
1. A Clear Path to Strong Intellectual Property (IP)
IP is a crucial factor for attracting investors, especially at the Series A stage and beyond. Investors look for a product or solution that can be protected from competitors.
Your IP doesn’t have to be fully established from day one, but you need a clear strategy to develop and secure it in the short term. Strong IP demonstrates that your business has a defensible edge, reducing the risk of competitors replicating your product. A lack of IP can make your startup vulnerable, which might deter serious investors.
Pro Tip:
Start by identifying what aspects of your product or technology are patentable. Engage IP experts early to avoid common pitfalls and ensure your IP rights are enforceable across key markets.
2. Impressive Revenue Projections
Revenue trends can be a game-changer, but incremental growth isn’t enough. Investors are drawn to high returns—they’re seeking multiples of 5x, 7x, or even 15x on their investments.
To gain their confidence, you need to show realistic yet ambitious projections supported by facts and a solid strategy. Due diligence will focus heavily on these numbers, so be prepared to back up your claims. If your financial model doesn’t demonstrate the potential for significant returns within 5–6 years, investors may lose confidence in your ability to deliver.
Pro Tip:
Highlight your customer acquisition cost (CAC) and lifetime value (LTV) metrics. Investors want to see a clear path to profitability with scalable unit economics. Additionally, show traction in terms of early adopters, repeat customers, or growing revenue streams.
3. A Strong, Diverse Team
If you’re a solo founder, securing investment will be an uphill battle. Investors look for startups with a strong, well-rounded team that brings diverse skills, backgrounds, and experience to the table.
Beyond diversity, the team must demonstrate expertise, decision-making ability, and resilience. Investors know that every company will face challenges—what reassures them is the leadership’s capacity to navigate through tough times. When investors fund your business, they’re really betting on your team’s ability to execute and adapt.
Pro Tip:
Complement your weaknesses with strong team members. For instance, if you’re a technical founder, bring in someone with robust business or marketing expertise. Highlight the team’s combined years of experience and their success in previous ventures.
4. A Defined Market Opportunity
Investors are drawn to startups that solve significant problems for a large and growing market. A vague or niche market can make it harder to attract funding, even if your product is innovative.
Pro Tip:
Clearly define your total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM). Explain why your solution is uniquely positioned to capture market share and how you plan to scale over time.
5. Customer Validation
Proof of concept isn’t enough. Investors want evidence that customers are willing to pay for your product or service. This could be in the form of pre-orders, pilot program successes, or recurring revenue.
Pro Tip:
Gather testimonials, case studies, or data showing how your product has solved real problems for early adopters. This validation demonstrates not just product-market fit but also the potential for scalability.
6. A Clear Exit Strategy
While founders often focus on growth, investors are keenly interested in how they’ll eventually realize returns. Whether it’s an acquisition, IPO, or other exit strategies, having a clear plan for how investors will get their money back (and then some) is essential.
Pro Tip:
Research comparable companies in your space and highlight successful exits. Show how your startup aligns with those trajectories and how the market landscape makes your exit strategy more realistic.
Know the Right Time to Seek Investment
If you’re not yet ticking these essential boxes, it doesn’t mean your company isn’t viable. You may have a great business, but that doesn’t automatically make it investable—at least not right now.
That’s alright!And that’s okay. You might decide you don’t need external funding to reach your goals. Plenty of successful companies thrive without raising venture capital, building strong, sustainable businesses on their own terms.
The key is knowing when the time is right to pursue investment—and when it’s better to keep building a strong foundation. Whether you’re chasing the “investable” tag or focusing on growing your business organically, success comes in many forms.
Becoming investable is not just about having a great product; it’s about demonstrating growth potential, building the right team, and addressing investor concerns. Whether you’re looking to secure funding or are content running a self-sustaining business, make sure you have clarity on your goals and the path to achieve them.
Both routes can lead to success—what matters most is aligning your strategy with your long-term vision.
At Global, we have’ve designed the Investment and Sales Growth Program specifically to help businesses like yours become investor-ready and achieve sustainable growth.
Whether you’re preparing to secure funding or focusing on boosting sales and scaling your operations, we’re here to support you at every stage of your journey.
Are you ready to take your business to the next level?
