Founder Knowledge

Investors, explained

Who they are, what they want, and how to find the right ones for your round. A practical guide for founders raising capital for the first time.

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Most founders learn about investors the hard way

By the time you've heard back from your tenth cold email and your second “not the right fit”, you've already learnt half of this. We wrote it down so the next founder doesn't have to.

The main types of investors

Investors aren't a single audience. They write different cheque sizes, at different stages, with different return expectations. Knowing which one you're talking to changes how you pitch.

Angel

Angel investors

Individuals investing their own money, usually at the earliest stages. Fast decisions, smaller cheques, often invest because they like the founder or know the space.

Typical cheque: £10k – £100k
VC

Venture capital

Professional funds investing other people's money. Looking for fast-growing, venture-scale businesses that can return the entire fund. More process, bigger cheques, longer relationships.

Typical cheque: £500k – £20m+
Family Office

Family offices

Private wealth managers investing on behalf of a single wealthy family. Often more patient capital, broader mandates, less pressure to exit on a fixed timeline.

Typical cheque: £100k – £5m
Corporate VC

Corporate VCs

Investment arms of large companies (Google Ventures, Salesforce Ventures). Strategic as well as financial — expect questions about how you fit into their wider business.

Typical cheque: £1m – £25m
Accelerator

Accelerators & incubators

Programmes like Y Combinator, Techstars, or Antler. Small cheque in exchange for equity, plus mentoring, network access, and a demo day at the end.

Typical cheque: £10k – £125k
Grant

Grants & government funds

Non-dilutive funding from bodies like Innovate UK, the British Business Bank, or sector-specific schemes. Slower process but you don't give up equity.

Typical award: £25k – £500k+

The stages of fundraising

Most companies that raise outside money go through a fairly predictable sequence of rounds. Each stage has different expectations — and a different kind of investor on the other side of the table.

01

Pre-seed

An idea, a prototype, or the first hints of a working product. Usually friends, family, angels, and pre-seed funds. The bet is on the founder, not the metrics.

£25k – £500k
02

Seed

A working product, early customers, signs of demand. Angels and seed-stage VCs. The bet is that you can find product-market fit with this round.

£500k – £3m
03

Series A

Clear product-market fit, repeatable growth, real revenue. Tier-one VCs lead. The bet is that you can scale what's already working.

£2m – £15m
04

Series B and beyond

Proven model, growing fast, expanding into new markets or product lines. Larger funds, growth investors, sometimes corporate VCs.

£10m – £50m+

What investors actually look for

Underneath all the jargon, most early-stage investors are checking the same handful of things. Get clear on these and your deck almost writes itself.

How to actually find investors

Cold outreach works less often than founders think. Most rounds close through warm intros, networks, and being visible in the right rooms.

01

Warm introductions

The single highest-conversion channel. A founder who's already in the investor's portfolio is the best route in. Map your network before you map investors.

02

Investor databases

Crunchbase, Pitchbook, Dealroom, Beauhurst. Filter by stage, sector, and recent activity. Aim for investors who've done deals like yours in the last 12 months.

03

LinkedIn and social

Build in public, post about what you're learning, comment thoughtfully on investors' content. Slow burn, but warms up cold outreach significantly.

04

Accelerators

Y Combinator, Techstars, Antler, EF, Seedcamp. They give you small money and a structured intro to hundreds of investors at demo day.

05

Pitch events & competitions

Sector-specific demo days, university pitch contests, government innovation events. Often free, often attended by exactly the investors you need.

06

Operator angels

Senior employees at successful startups invest privately. Easier to reach than VCs, often add huge operational value, and can introduce you to bigger funds later.

What investors want to see in your deck

A pitch deck isn't a business plan. It's a tool to get to the next meeting. Most investors decide in under three minutes whether to keep reading.

Common mistakes founders make

The mistakes that cost most rounds aren't on the slides — they're in the approach.

Now build the deck

Knowing what investors want is half the work. The other half is showing them in a deck that's actually worth their three minutes.

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