What Investors Really Want: Preparing Your Startup for Funding

So, you want to raise money for your startup. Great! But before you send that pitch deck or book a meeting with an investor, there are some important things you should know. Raising money isn’t just about having a great idea—it’s about showing that you’re ready. Here’s a simple guide to help you prepare.

1. Know Your Numbers (And Understand Them Too)

Investors love numbers. Why? Because numbers tell a story. They want to know:

• How much money you’re making (or plan to make)
• How many customers you have
• How much it costs to get a new customer
• How much you spend each month

Don’t just throw numbers at them. Understand what they mean. Be ready to explain how you came up with those numbers and what they say about your business.

Tip: If numbers are not your strong suit, get help. A simple spreadsheet with your income and spending can go a long way.

2. Be Clear About Your “Why”

Your idea may be cool, but investors want to know the deeper reason behind it. Why does your startup matter? What problem are you solving? Why are you the right person to solve it?

People invest in people. If they believe in your mission and trust your heart, they’ll be more likely to fund your dream.

Tip: Practice telling your story in a few clear sentences. Focus on what inspired you and who you’re helping.

3. Show You’ve Done the Work

Before asking for help, show that you’ve already helped yourself. Have you built a product, tested an idea, or found real users? Even if your business is new, show what you’ve already done.

Tip: Investors love to see traction. That could be a working app, happy customers, or even a growing waitlist.

4. Keep It Simple

Fancy words don’t win investors. Clarity does. Your pitch should be easy to understand. If a 12-year-old can’t get it, it’s probably too complicated.

Tip: Try explaining your startup idea to a friend who’s not in tech or business. If they get it, you’re on the right track.

5. Know What You Need (And Why)

Don’t just say, “I need $100,000.” Break it down. How will you use the money? For marketing? Hiring? Building the product?

Investors want to know you’ve thought it through. They don’t just give money—they want to see a plan for how that money will help you grow.

6. Get Honest About Risks

No business is perfect. Be honest about what could go wrong—but also explain how you’re working to fix or avoid those problems.

Being upfront shows maturity. It tells investors that you’re realistic and ready for the road ahead.

7. Build Relationships First

Don’t wait until you need money to talk to investors. Start now. Follow them on LinkedIn. Comment on their posts. Send a quick message saying, “Hi, I admire your work.” Over time, this builds trust.

When the time comes to pitch, they’ll already know who you are—and that’s a big win.

8. Believe in What You’re Building

Confidence matters. If you don’t believe in your business, no one else will. That doesn’t mean being arrogant. It means being clear on your purpose, your plan, and your power.

Speak with faith. Share your progress. Keep showing up.

Final Thoughts

Raising money is not just about asking—it’s about showing that you’re ready. That you’ve done your homework. That you know where you’re going. Investors want to be part of something strong and real.

So, prepare well. Trust your vision. And when the time comes, pitch with confidence.

You’ve got this.

Want help with your investor pitch, funding strategy, or founder mindset?
Book a strategy session with the Mercy Elroi team. Let’s get your business ready for the next level.