We caught up with a few investors to uncover how they evaluate startups beyond the pitch. From demonstrating traction to building strong relationships, here’s the inside scoop on what it takes to secure investor confidence.
Great Businesses > Great Ideas
Many entrepreneurs assume that securing investment is simply about presenting a unique or groundbreaking idea. However, Justin Williams of Seae Ventures points out that “investors aren’t just looking for a great idea—they’re looking for a great business.” In other words, they want to see a clear path to revenue, a defensible market position, and a leadership team capable of executing the vision.
“Founders often focus too much on the pitch and not enough on demonstrating traction, clear financials, and a deep understanding of their customers and market dynamics,” he shares.
Justin Williams of Seae Ventures
Investors Want to Know You’re Prepared to Lead
The best ideas mean little if the founder can’t lead the company to success. When evaluating founders, Justin emphasizes three key qualities: clarity of vision, operational execution, and founder-market fit. Investors are looking for evidence that founders can adapt to changing market conditions while staying true to their long-term goals.
Beyond that, investors want to see that founders can execute. Have they been able to build and implement a strategy? Can they attract the right talent and make smart decisions about resources? “Red flags include an inability to answer tough questions, resistance to feedback, and difficulty attracting top talent,” Justin warns. Founders who can't handle pressure or admit when they need help will find it much harder to build a team capable of scaling.
Erica Murdock of Unseen by Seae Ventures
Clarity, Data, and Feedback Are Crucial
The best founders are those who can clearly articulate the problem they're solving, the opportunity in the market, and why their business is the right solution. Erica Murdock of Unseen by Seae Ventures explains, “Investors don’t expect founders to have all the answers, but we do expect them to be able to clearly articulate the problem, the market opportunity, and how and why the company they are building is suited to address that problem.”
Erica emphasizes that it’s critical that data and assumptions be accurate and defensible. Investors will appreciate a strong narrative supported by data, whether it’s customer feedback, market trends, or financial forecasts to give them confidence that your business isn’t just a risky bet but a strategic opportunity with real potential for success.
(Long-term) Relationships Are Key
Raising capital isn’t just about the pitch—it’s about cultivating relationships. “The best fundraises happen when founders start building investor relationships long before they need capital. Engage with investors early, take feedback seriously, and show progress over time,” Justin says.
Erica Murdock of Unseen by Seae Ventures
Building trust and credibility with investors early on can pay dividends later when you’re actively raising capital. Take the time to research who’s actively investing in your sector, the stage they focus on, and key aspects of their investment thesis that could either boost your chances or rule you out entirely.
“You have one chance to make that first impression, make sure you’re fully prepared,” reinforces Dan Sands of Factor 7 Medical. “Don’t start outreach to investors until you have compiled your data room, drafted deal terms, established cap table, and vetted your pitch and supporting information with trusted experts that have raised capital (in your vertical) in the past.”
Dan Sands of Factor 7 Medical
The Art of Handling Rejection and Criticism
That moment when an investor looks you in the eye and says, “we’re going to pass.” Your heart sinks, but what happens next matters most.
Founders must demonstrate emotional intelligence, balancing passion with humility, Dan explains. Founders who can gracefully accept feedback, make necessary pivots, and keep moving forward are the ones most likely to earn an investor’s confidence.
Erica agrees: “Coachability and how the founder responds to feedback are two signals that I believe speak volumes to the founder's maturity as a leader.”
How Capital Readiness Programs Help Prepare Founders
This is all excellent advice for founders, but how do you translate it into actionable steps? That’s where the Capital Readiness Program (CRP) comes in. Designed to equip founders with the hard and soft skills they need to build investor confidence, CRP focuses on the essentials of structuring data rooms, handling complex investor conversations, and adopting the CEO mindset required for fundraising.
With two years, six cohorts, 24 investors, and $35.5M raised, CRP has already helped 60 companies sharpen their approach.
According to Justin, companies in the program become more polished in three areas: investor readiness, market validation, and resilience & strategy. Erica adds that CRP’s “comprehensive curriculum” help founders navigate the entire process—from refining business models to regulatory hurdles.
“I think about my own first-time fundraising experience and how much I would have benefited from a crash course in ‘what to expect when fundraising.’ Without a more robust understanding of what it truly meant to be capital ready, my team and I ended up pausing our process for a few weeks to refine our pitch and related documentation,” she explains.
Adrianna Samaniego of Cherryrock Capital
“CRP is so detailed and realistic. It’s opening up what seems to be this black box around venture and how to get funding, and how to build and scale your business,” reflects Adrianna Samaniego of Cherryrock Capital on her time as a Cohort 6 Investor-in-Residence. “It is literally a cheat sheet.”
Dan agrees, saying that CRP helps founders master the intricacies of team dynamics, market adoption, and regulatory challenges, setting them apart in investor discussions.
Fundraising is hard—but it doesn’t have to be mysterious. CRP helps founders avoid common pitfalls, focus on what matters most to investors, and enter the fundraising process with confidence.
For any founder considering a capital raise, the best advice might be this: invest in your readiness before asking others to invest in your business.
