Hidden truths investors rarely say out loud
Every founder dreams of raising funding, but the path rarely follows the neat script. VCs judge by people, numbers, and choices you make under pressure.
1. VCs back the founders, not the idea
Investors hire founders. They bet on clarity, calm thinking, and execution ability — not slides or buzzwords.
2. Real traction beats complex forecasts
Week-over-week growth, retention, and paying customers matter more than five-year projections.
3. Unit economics can make or break your pitch
If you can’t explain CAC, LTV, payback period, and margins clearly, no vision will save you.
4. The market wants profitability, not blind growth
Today’s investors seek capital efficiency. Show a credible path to margin expansion.
5. A term sheet is not a celebration — it’s a negotiation
Liquidation preferences, board control, and vesting terms shape your future. Read every line.
6. Investors want a clear exit story
Who will buy your company? Are there recent acquisitions in your space? Be realistic.
7. Your narrative must reduce doubts, not inflate hopes
Great pitches answer: How will you acquire customers? What’s your defensibility? Why now?
8. Warm intros help, but targeting matters more
Pitch 5 investors who know your space deeply — not 30 who’ll skim your deck.
9. Milestone-based funding creates fairness
Tranches align incentives: you prove progress, they release capital. Win-win.
10. Fundraising is a skill — practiced over time
Rehearse objections, know your walk-away numbers, and treat every meeting as practice.
A practical checklist for Indian founders
- A crisp 12-slide deck
- Clear one-line description of your product
- Simple traction graph (MRR, users, retention)
- Unit economics explained without jargon
- Realistic use-of-funds plan
Why predictability beats excitement
Investors choose the founder who reduces risk — not the one with the loudest pitch. Clarity > charisma.