7 Things Investors Typically Look for
Feb 23, 2025
Attracting investors can be a game-changer for any startup—but first, you need to understand what they’re really looking for. Whether you're pitching at a demo day or sending cold emails, these are seven essentials most investors consider before saying "yes."
A clear, scalable business model
Investors want to know how you make money and whether it can grow over time. Subscription models, SaaS, marketplaces, and digital products often stand out.
Market demand and size
Does your product solve a real problem? Is the market big enough to support long-term growth? Investors want a total addressable market (TAM) that justifies the investment.
A strong founding team
The right team can pivot through challenges and execute a vision. Investors look for teams with industry knowledge, technical expertise, and a strong work ethic.
Traction and social proof
Have you launched? Are customers using or buying your product? Early sales, email lists, waitlists, or user growth show that people care about what you’re building.
A competitive advantage
This could be proprietary tech, an exclusive partnership, branding, network effects, or a first-mover advantage. Anything that makes you hard to copy is a huge plus.
Exit potential
Whether through acquisition or IPO, investors want to understand how they’ll eventually get a return.
Solid financials and forecasts
Know your numbers—costs, margins, customer acquisition, churn, lifetime value. Investors want to see data-backed projections and financial literacy.
Crafting a pitch or investor deck that touches on all seven areas will greatly increase your chances of getting noticed.
