Unlike founders, investors monitor average market benchmarks and are likely familiar with specific multiple benchmarks for your industry, stage, and geography. You should know them too to justify your valuation.

Never say you don’t have any. This suggests either you didn’t do your homework or your market is too small to scale.

Your revenue demonstrates two main things: the stage of your company and its market valuation (remember that investors always know the multiples). Most investors focus on companies that meet certain revenue benchmarks, so you need to prove that you fit their investment criteria. The larger the share of your revenue that is recurring, the closer your startup is to the investment grail: Product-Market Fit.

Investors seek a certain share in the round that typically aligns with their investment strategy. They want to know whether they will lead or follow other investors. Additionally, they always assess the adequacy of your ask and how long it might take you to close the round. If you’re raising $1 million, pitching to an investor with an average check size of $50,000, and no money has been committed yet, the investor may assume they have at least a year to decide whether to invest or simply observe what happens next.

Your business model shows how much money you are likely to make and how challenging it will be to attract new customers and scale. Some business models scale more effectively than others.

Although employees are very important, most of them will eventually leave. Investors want to be confident that the core founding team—the shareholders—have the experience and competencies to grow the business and achieve a successful sale or IPO.

Investors want to see your cap table and be prepared to explain how current investor and founder shares are diluted. If a key investor is not leading or participating in the next round, provide a solid explanation: "Investor N focuses on early-stage funding but supports the company and seeks a lead investor with specific capabilities for this round."

Always know your latest metrics. Investors benchmark your market proposition using:

1. Financials: Revenue, growth rate %, ARR/MRR, EBITDA, operational costs, user growth %, and marketing spend.
2. Market metrics: TAM-SAM-SOM, with calculations explained.
3. Marketing performance: Metrics like CAC, conversion, churn rate, LTV, retention, and brand recognition.

TAM represents the total potential market size if your product dominates. Investors seek scalable opportunities. A credible TAM signals that the market is worth their investment and your growth strategy aligns with its potential.

The Lifetime Value to Customer Acquisition Cost ratio demonstrates how efficiently you convert marketing and sales into long-term revenue. Investors value this as a measure of scalability and marketing ROI, proving the team has learned to use funds effectively.

Investors need to see your roadmap to acquire customers and secure a competitive edge. A robust GTM plan shows you can capture market share and defend it against current industry leaders.

Investors expect proof of growth potential. Show how new investments will accelerate your company’s valuation growth and create substantial ROI, increasing the value of their stake.

Investors don’t need technical specifics but want to know if your product is hard to replicate. Highlight your innovation, unique competencies, and any proprietary advantages that protect your market position.

Highlight active users rather than registrations or downloads. For subscription models, emphasize retention metrics like renewal rates to demonstrate customer satisfaction and recurring revenue streams.

Share how you identified the problem and validated its existence. Founders with firsthand market experience have an edge. Prove the problem is critical enough for you to commit years to solving it.

Investors assess team efficiency. Growth should align with business needs. A bloated team signals high burn rate without proportional output, while a lean team suggests focus and cost control.

Investors want to know if you profit from users or have a clear path to profitability. Share how you plan to optimize unit economics to increase profits or reduce losses and what current obstacles you face.

Investors expect at least one founder to operate in your primary market. Team location also indicates your operational flexibility, payroll management, and market understanding.

Be honest about potential obstacles and how you’ll overcome them. Legal certifications, registration, or tax issues often arise in new markets. Identifying barriers demonstrates thorough market research.

Investors want to know if any product components could become unavailable or too costly. Highlight opportunities to reduce your burn rate, such as shifting to more cost-efficient technologies without compromising quality.

Integrations and APIs enhance scalability and attract partners. They demonstrate your product’s ability to embed seamlessly into existing ecosystems, boosting usability and customer acquisition.

Strong user engagement validates your product's value and retention potential. It’s a key growth indicator for investors evaluating customer loyalty and market fit.

Your project stage reflects its risk level and return potential. Early-stage startups promise high returns but carry higher risks, while advanced stages show proven traction and scalability.

Patents and IP protect your product’s uniqueness and are significant assets. They reduce competitive risks and make your startup more attractive by ensuring long-term market advantage.

A clear corporate structure minimizes legal risks and ensures accountability. Investors value companies where responsibilities are defined, and governance is transparent.

Necessary licenses validate compliance with legal requirements, reducing regulatory risks. This is crucial for smooth market entry and long-term operational stability.

Clear role distribution enhances efficiency and prevents conflicts. Investors seek teams with logical role assignments based on skills and experience, fostering better decision-making.

Founders with proven track records inspire confidence. Successful ventures or relevant expertise demonstrate their ability to navigate challenges and increase the likelihood of success.

A well-defined exit strategy reassures investors of profitable returns. Options like IPOs or acquisitions show foresight in aligning growth goals with potential liquidity events.

Investors need to see how AI/ML adds value and provides a competitive edge. Transparency about your algorithms and data is essential to building trust and demonstrating scalability.

Strong contract terms signify reliable revenue streams and secure customer relationships. Investors look for stability and predictability in your agreements.

Burn rate and runway reveal your financial health. They show how quickly funds are spent and how long you can operate without new capital, helping investors gauge sustainability.

Grants signal external validation and financial stability. They reduce investment risk and demonstrate project viability, making your startup more attractive to potential backers.

Transparency about debts reassures investors. While manageable debt shows discipline, unresolved liabilities or unpaid wages may be red flags that deter investment.

These UK tax schemes make investments more appealing by offering tax relief. Early-stage investors often prioritize startups eligible for SEIS/EIS incentives.