Securing venture capital (VC) for your startup can feel like a daunting process, but with insights from seasoned investors and founders who’ve successfully navigated the VC world, the path to success becomes much clearer. Here’s how you can learn from their expertise and make your fundraising journey smoother.

Entrepreneur UK brings together top experts in VC, sustainability, risk management, and startup growth. They’ll share actionable advice on securing funding, building investor trust, harnessing technology and data, and demonstrating product-market fit. Keep reading to learn how to navigate the funding landscape and position your startup for success.

Solve problems, show value
Stuart Ferguson, Investment Partner at Sustainable Ventures, Europe’s largest climate tech hub headquartered in London, which has supported over 500 businesses from startup to success, emphasises the importance of focusing on solving real customer problems.

He advises that founders must clearly demonstrate how their technology addresses these challenges in a cost-effective way to stand out to investors.

“Bringing new technologies to market is hard as you have to displace incumbent solutions or overcome customer apathy – gaining insight into exactly what problems your customers are facing will help you tailor and enhance your technology to develop clear competitive advantage and increase the speed of customer adoption,” he says.

He further advises entrepreneurs not to shy away from directly asking potential customers about their challenges and what they want from your products. Most customers are willing to offer their time to early-stage entrepreneurs, especially if you have innovative technology to share. Engaging with them early on can provide valuable insights and strengthen your product’s appeal.

“Finally, if you can show that you have a credible value proposition with clear adoption drivers and you can demonstrate that your team can scale that value proposition, then finding investors will be relatively easy,” he adds.

Trust through transparency
Ivan Nikkhoo, Managing Partner of Navigate Ventures, a B2B enterprise SaaS fund focused on early to mid-growth stages with offices in Los Angeles and London – encourages entrepreneurs to be transparent about their fundamentals and unit economics as they navigate between Series A and B growth rounds.

Nikkhoo emphasises that honesty in these areas is crucial for building credibility with investors. This authenticity not only sets the groundwork for a trustworthy relationship but also lays a strong foundation for future interactions as the business evolves.

“VCs want the highest possible return and must have confidence in the company’s plan for achieving this. But there’s no value in overinflating projections or the market opportunity – it’ll only come back to haunt the founder further down the line,” he says.

Nikkhoo’s perspective is particularly relevant in an environment where many startups face pressure to show rapid growth, often leading to unrealistic expectations. He emphasises that honesty and transparency are key to earning investor trust, even if your numbers aren’t as strong as you’d like.

By maintaining a clear line of communication, founders can foster a more supportive atmosphere where investors feel engaged and informed about the company’s trajectory. He believes that being upfront about your challenges not only builds credibility but also strengthens relationships with investors—something that can make all the difference when securing funding and support for future growth.

In an industry where every decision can have significant ramifications, the importance of integrity cannot be overstated. Founders who embrace this approach are often better equipped to navigate the complexities of scaling their businesses, thereby enhancing their chances of long-term success.

“Trust is built when founders present realistic and achievable projections and openly discuss risks and uncertainties,” he adds.

Embrace data-driven decisions
Julie Cunningham, founder and CEO of Portend, a risk protection agency based in London, emphasises the modern shift in investment dynamics that influence funding opportunities.

“Securing investment today is all about transparency and hard facts; the days of relying solely on trust are long gone,” she notes.

The rise of big data, AI, and machine learning has completely transformed investment analysis, portfolio optimization, and risk management. These advanced technologies allow investors to make smarter, data-driven decisions, identify opportunities faster, and manage risk more effectively than ever before.

“These technologies allow us to deliver real-time insights and manage risks effectively,” she explains. Cunningham highlights how real-time data and predictive analytics enable fund managers to not only make informed decisions but also monitor investments with early-warning systems.

“Automation simplifies processes, providing proactive solutions and empowering investors and VCs with better decision-making capabilities.”

Leverage warm introductions
Building relationships and leveraging your network can make all the difference in getting your foot in the door and standing out from the crowd.

Sebastian Peck, Lead Partner for the UK at KOMPAS VC, an early-stage venture capital firm based in The Netherlands, advises that to maximise your chances of securing startup funding, it’s crucial to obtain an introduction to a VC.

“If you come recommended by someone the VC trusts and respects, you will get their attention.”

These endorsements not only establish your credibility but also create a personal connection that makes your pitch more memorable. Building these relationships can help you bypass initial hurdles and engage with potential investors in a more impactful way.

Prove product-market fit
Simon Hood, co-founder & CEO of London based Sooper Books, a children’s story streaming service backed by all five Dragons from Dragons’ Den as well as investors such as Monzo’s founder Tom Blomfield and Ada Ventures, is an expert on attracting VC funding.

His extensive experience in the startup ecosystem has provided him with valuable insights into what modern investors seek in promising ventures. He notes that in the past 18-24 months, the landscape has shifted significantly, influenced by changing economic conditions and investor sentiment. Today’s VCs are increasingly focused on tangible results and growth rather than just groundbreaking ideas, making it essential for founders to adapt their strategies accordingly.

“Our tip would be to focus on proving product-market fit and demonstrating how you will scale. Investors will likely be looking for a minimum of 10-15% month-on-month organic growth.”

This emphasis on measurable outcomes reflects a broader trend among VCs to prioritise sustainability and long-term viability over mere innovation. Hood advises entrepreneurs to clearly articulate their growth strategies and provide data-backed evidence of their progress.

By showcasing a solid understanding of their target market and how their product meets those needs, startups can build a compelling case for investment. Ultimately, this approach not only improves the chances of securing funding but also positions founders as credible leaders capable of steering their companies toward enduring success.

Landing VC investment means solving real problems, being upfront and data-savvy, proving your market fit, and building strong, personal connections to make your startup shine.