5 Things top investors look for from founders

by Startacus Admin
Market knowledge, a great team, and a good product are certainly essential when trying to secure funding. But what else are angel investors looking for from the startup founders who pitch to them?
We spoke to some of London’s leading investors to find out what the most important elements are for a successful pitch.
Here are the five key things top investors look for from founders:

1. Transparency:
“The worst mistake a founder can make when pitching for funding is being opaque about any aspect of their business, however small it may seem,” says Kevin Chong, a former corporate financier at Investec and PwC.
“Good investors do their research and will ask about the true progress of the fundraising, who the competitors are and what your background is. Getting found out for lack of transparency has a lasting negative impact with investors.”
2. Traction:
“Personally I don't go for ideas without traction. Initially I focus on the market, the team and the traction. It’s then and only then I begin to think about the idea,” says Ami Shpiro, founder of Innovation Warehouse, a business accelerator in Farringdon.
“I ask myself: does it come from a very unique and original perspective, and consider whether it is timely, or ahead of its time. Also, how defensible is it against rival products and markets? Can it be patented against anyone who might want to steal your idea?”
3. Read your audience:
“Presenters of all types make the mistake of failing to pay attention to their audience during the pitch. This includes your body language, asking the right questions and replying in an efficient manner,” suggests David Ryan, a serial entrepreneur and investor.
“Remember, a good presentation should be like tasting wines: find what your audience likes, then sell them a case. Some folk just try to spray cheap champagne hoping that is what the audience want, and I can tell you – it isn’t.”
4. No competition:
“Honestly, the worst thing founders can do in a pitch is say that there’s no competition. It really aggravates me, because it implies that either there is no market for what they are pitching, or simply that the founders haven’t done sufficient research, or simply not looked hard enough for the competition,” says Chris Mairs, Founder of Metaswitch Networks.
5. Scalability:
“Imagine ten pitches to angels: statistically for every one or two that make it, all the others will be failures, or with minimal returns at best. So, I look for ideas with the possibility of a very big upside that can be executed and protected,” says David Ryan.
“First, make very sure you have a product that solves a real and painful problem. Easier said than done when starting with limited resources, but I advocate doing as much market research in as deep a way as possible. Imagine how entrepreneurs will feel after giving all their passion and resources to scale, only to discover no one needed your product badly enough in the first place,” suggests Kevin Chong.
Investors see hundreds of pitches throughout the year, so it’s important to be expressive and show your passion for your business.
Nerves can get the better of even the most experienced founders, but as long as you take care to communicate clearly, and give honest answers to their questions, you’ll stand a better chance of getting that all-important investment.
AngelLab is a London-based venture capital firm that invests in exceptional tech entrepreneurs in the UK and Europe. AngelLab’s portfolio includes Adbrain, Seedrs, Move Guides, Azimo and Code Kingdoms. Kevin Chong, David Ryan, Ami Shpiro and Chris Mairs are all Partners at AngelLab.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Tech Nation calls for tangible support to secure capital, talent, growth and exits needed to accelerate the growth of UK tech in decade ahead.

Glasgow-based This is Milk seeks investment for Neve Learning, its cloud-based Ed-Tech platform that has inclusivity and accessibility at its core.

With the UK facing a clear digital skills gap, Amy Caton, Digital Talent and Impact Senior Manager at BT Group shares some insights on what businesses should do to close that divide.

The lowdown on Berlin-based Beazy and its innovative solution that helps teams to plan, produce and deliver creative content and helps businesses to connect with talented content creators.

The lowdown on Fluffy, the app offering dog training, 24/7 vet messaging and insurance to give pet owners peace of mind and support them with their pet care responsibilities.

Huckletree's new Web3 HQ aims to put London’s West End at the forefront of Britain’s tech superpower ambitions.

Leading sports marketing platform, OpenSponsorship announces move into music sector, the first new vertical industry for the trans-Atlantic martech business.

Kingussie High School scoops first place for Junior and Senior categories at this year’s Growing Future Assets Competition.

The lowdown on Manchester-based Arctic Shores and its innovative recruitment solution to help candidate potential count as much as skills and experience.

With the demand for tattoo removal now greater than ever, specialist NAAMA Studios makes a bid for a further £11m in funding.
Published on: 22nd December 2014
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Tech Nation report reveals UK Tech could quadruple in value by 2032 with right conditions 23rd Mar 2023 Tech Nation calls for tangible support to secure capital, talent, growth and exits needed to accelerate the growth of UK tech in decade ahead.
- Neurodiverse learning and training platform Neve shares major six-figure investment opportunity 22nd Mar 2023 Glasgow-based This is Milk seeks investment for Neve Learning, its cloud-based Ed-Tech platform that has inclusivity and accessibility at its core.
- Huckletree opens new London hub for tech companies pioneering Web3 solutions 16th Mar 2023 Huckletree's new Web3 HQ aims to put London’s West End at the forefront of Britain’s tech superpower ambitions.
- OpenSponsorship making its move into the music sector 16th Mar 2023 Leading sports marketing platform, OpenSponsorship announces move into music sector, the first new vertical industry for the trans-Atlantic martech business.