How to Secure Investment: A Founder’s Guide to Investment Prep

Raising money for your startup can feel daunting. We get it – we’ve been in your shoes, nervously pitching our idea and hoping for that life-changing “yes.” The truth is, securing investment is highly competitive (fewer than 1% of startups ever get venture capital), but it’s far from impossible.

In this guide, we’ll walk you through proven steps to attract investors, from laying a solid foundation to avoiding common pitfalls, backed by real examples, data and hard-won wisdom.

We’ll share insights from founders who’ve done it (including a team that recently won backing on BBC’s Dragons’ Den) and from investment expert, Jaspal Bahra. . By the end, you’ll know exactly what investors are looking for and how you can deliver it.

Tip 1: Validate your idea and prove your concept

Before chasing big investors, you need to focus on demonstrating that your idea actually works. Most founders begin with personal savings or support from friends and family. In fact, 77% of new businesses rely on personal funds initially, while only 0.05% raise venture capital out of the gate. Starting lean forces you to validate your concept and build traction, which makes you far more attractive to serious investors later on.

Take the case of Zak Marks, co-founder of Kitt Medical (a UK startup providing emergency “Anaphylaxis Kitts” for allergic reactions).

What started as a university project in 2020 lockdown quickly became a business. With graduate jobs on hold, Zak built a simple website to test his idea and asked friends and family for feedback. Some believed in the concept enough to invest, providing around £150k that funded 10 prototype kits. These were installed in seven schools over five months, giving real-world feedback and even saving a teenager’s life.

As Zak explains:

“Those prototypes showed us everything we needed to know. Once we had that evidence, we could go back to investors and say: look, it works, people want it”.

That proof unlocked another £300k from a wider circle of investors and paved the way for Kitt’s official launch.

The guys at Kitt started small, proved the concept, and used clear milestones to justify larger raises. Even if you’re pre-revenue, you need traction proxies, such as a pilot, a waitlist or some credible endorsements to show that people genuinely want your solution.

Tip 2: Build a strong team (because investors invest in people)

At early stages, your team often matters more than your product. In successful pitch decks, VCs spend nearly 20% of their time analysing the team slide. They know things will go wrong. What counts is whether you have the people who can adapt.

“What they invest in is the team. Because you can have a fantastic idea, but if you don’t have the right team, you’re screwed. Investors want to see people who can problem-solve and think on their feet.” — Jaspal Bahra, Former KPMG Senior Manager at K-Incubator

Zak at Kitt Medical understood this. As a product designer with little sales or finance experience, he brought in James Cohen, who complemented his skills and became co-founder. Together they presented a balanced, credible team.

Beyond the CVs, investors want founders who are coachable and presentable. Confident but not arrogant, prepared and able to work well with others. They also look for authentic passion. Lived experience, like Zak’s severe allergies, or deep sector expertise, reassures them you’ll stick it out when challenges hit.

As Deborah Meaden told the Kitt founders on Dragons’ Den: “I love it… You know where your market is and you two are as smart as anything.”

Tip 3: Know your market and competitors inside out

34% of startups fail due to a lack of product-market fit. It’s the number one reason businesses don’t succeed. That’s why investors care less about the product itself and more about whether you’ve proved there’s a market for it.

To do this, you need to start with the pain point. Define the problem clearly and back it with data. Using Kitt Medical as the example, in the allergy space:

• 44% of British adults now suffer from at least one allergy
• Hospital admissions for anaphylaxis have risen 615% in 20 years

Those numbers make the problem impossible to ignore.

Show you know the competition

As Jaspal Bahra warns:

“A common mistake founders make is thinking they’re the only ones with the idea. Investors expect you to really understand your competitors – who they are, how they operate, and how you stack up.”

Map out both direct and indirect competitors. Don’t claim there are none. Instead, acknowledge them in the pitch and explain your edge, whether that’s technology, pricing or execution.

When pitching Kitt Medical, Zak used a simple analogy: “It’s like a defibrillator, but for anaphylaxis.” That showed he understood the existing options and regulatory realities, while making his value proposition instantly clear.

Explain “why now”

Finally, highlight the trends that make your timing right. Investors want momentum.

In Kitt’s case, allergy prevalence is rising so quickly that half of Europe’s population is expected to be affected by 2025. By linking your business to a macro shift, you reassure investors that you’re riding a wave, not swimming against the tide.

Tip 4: Show traction and a sustainable business model

According to the British Business Bank, when deciding whether to back a startup, UK angel investors consistently rank commercial traction among their top three priorities. But, they also care how you’re going to make money in the future. Jaspal told us:

“Investors look for a sustainable model. They’ll ask: how do you make money, and how do you keep making it?”.

You need to prove demand in practice

This is exactly what Kitt Medical did before appearing on Dragon’s Den. By 2023, they had:

• Kits installed at 600+ sites
• More than 15,000 people completing training
• Their product had already been used in 10 real emergencies. 

This evidence of traction is hard to ignore. It’s tangible proof that the solution was working in the real world and saving lives.

Building long-term sustainability

Kitt also showed that demand wasn’t a one-off. As co-founder Zak Marks explains:

“We sign three to five-year contracts. Schools and businesses buy a kit… knowing that there’s that longevity in the business model is very important for any future exit or just generally getting your money’s worth in an investment”.

The combination of visible traction and predictable recurring revenue reassured investors that Kitt wasn’t just gaining attention, but it was building a business with staying power.

Action step: Document your traction clearly. Pair three key usage or adoption metrics with your revenue model, and make sure you can explain how they compound over time.

Tip 5: Think like an investor: plan for ROI and an exit

Investors are backing you with the expectation of a return. The odds are stark. Analysis of UK startups shows that only around 2% achieve an exit within five years, while about 20% fail or become inactive in the same period. That’s why investors want to see a credible exit path before committing.

You don’t need every detail pinned down, but outlining realistic scenarios like acquisition, sector consolidation or IPO shows you’re building with an endgame in mind. A general timeline helps too. Some investors want a return in three to five years, others are happy to wait longer if the upside’s bigger.

Also, you need to be clear about how you’ll use the money. Show how the raise translates into measurable milestones like user growth, revenue or market entry. Investors want to know their capital’s driving value, not just covering overhead.

Tip 6: Choose investors who bring value beyond money

When you’re raising, it’s tempting to think “any money is good money.” But the reality is that the right investor can shape your startup’s future in ways that go far beyond their cheque. In the UK, around 70% of angels say they provide mentoring or strategic input alongside capital. That extra support can be as valuable as the funding itself.

A few things you should be considering include:

• Skills and knowledge gaps: If your team’s light on finance, marketing or sales, find an investor who brings that expertise. As Jaspal puts it: “See where you have gaps, and choose investors who can fill them.”
• Sector expertise: Domain knowledge accelerates growth. Kitt Medical targeted Deborah Meaden for her hospitality background, which aligned with their expansion plans.
• Networks: A well-connected investor can open doors to clients and partners. Steven Bartlett used his reach to raise Kitt’s profile well beyond the money invested.
• Hands-on help: Some investors get directly involved. One of Kitt’s angels, a parent of a child with allergies, ran their digital marketing at cost and continues to advise them.
• Reputation and credibility: Backers with strong profiles validate your business. After Dragons’ Den, Kitt saw inbound interest from Amazon and Knight Frank thanks to the credibility of their new partners.

Tip 7: Prepare, pitch and persevere

Once you’ve validated the idea and lined up investors, you need to deliver. Pitching is part art, part science, and it demands preparation.

1. Tell a story

Investors remember stories, not spreadsheets. Frame your pitch around the problem, your solution, traction so far, and where you’re headed. Data matters, but humanising the problem makes it stick.

2. Know your numbers cold

Nothing kills confidence faster than blank stares on basic metrics. In the run-up to Dragons’ Den, Zak and James drilled each other daily until every figure was second nature. As Zak recalls: “By the time we got to Manchester… we were just on autopilot.” That preparation paid off because Deborah Meaden later remarked that the more they spoke, the fewer holes she could see.

3. Practice and refine

Pitching is a skill that improves with repetition. The Kitt founders even spoke to 10 entrepreneurs who’d been on Dragons’ Den to learn from their experiences. Seek feedback from mentors, founders, or friendly investors. Each round will sharpen your delivery, just avoid sounding scripted.

4. Expect a long road

Fundraising is rarely fast. In the UK, the average time from first meeting to closing a funding round is six months or more. Even after hearing “I’m in” on TV, Kitt waited eight months for their Dragons’ Den deal to be finalised. Keep multiple conversations alive, follow up consistently and keep running your business in parallel: nothing impresses investors more than momentum.

What to do before you approach investors

1. Design a pilot with measurable outcomes

Don’t just say “we’re building X”, show you’ve already tested it. For example, if you’re developing a healthtech app, run a three-month pilot with 50 users and track outcomes like retention, daily usage or reported benefits. The goal is to create hard data (user numbers, testimonials, or case studies) you can put in front of investors. This proves the problem is real, the solution works, and that you can execute.

2. Audit your team and close gaps

Write down the core areas every investor expects covered: product, sales/marketing, finance, and operations and score your team against each.

• If you’re missing finance expertise, recruit an advisor who can help with forecasts and investor conversations.
• If you lack marketing, find a co-founder or contractor to lead growth experiments.

Investors will ask about your team first; showing that you’ve anticipated weaknesses and proactively plugged them builds credibility.

3. Build a market dossier

Prepare three data points that prove the scale and urgency of your problem. For example, “UK SMEs spend £Xbn annually on compliance” or “Hospital admissions for Y have grown Z% over 10 years.”

Pair this with a one-page competitor matrix that shows 3–5 names, what they do, and how you’re different. Investors know competition exists; presenting this upfront shows you’re realistic, not naive.

4. Document traction in numbers and stories

Choose metrics that matter in your business model, such as paying customers, active users, partnerships or repeat orders. Put them in a simple chart that shows growth over time. Add one human story, e.g. “Our kit saved a 14-year-old’s life during a school trial”, to make the numbers resonate. This combination of quantitative and qualitative proof reassures investors they’re backing something real.

5. Write your sustainability narrative

Prepare a short script on how you make money, with numbers attached. For example, “We sell annual contracts at £2,000 each, with 70% gross margins. Renewal rates are 90%, so every customer is worth £6,000 over three years.” Practise saying it out loud until it feels natural. This shows investors you’ve thought about profitability and durability.

6. Draft an exit vision

List two or three realistic buyers and why they’d be interested. Sketch a 3–5 year timeline with milestones that make your business more attractive (e.g. user base, recurring revenue, regulatory approval). Investors know not every plan plays out, but having a thought-through roadmap shows you understand their need for ROI.

7. Profile your ideal investor

Write down the three things you’d most value beyond money. These could be introductions to enterprise buyers, experience scaling B2B sales or public credibility. Use this as your filter when speaking to potential backers. Ask them directly: “What support do you usually provide portfolio companies?” This keeps you from taking “dumb money” and helps you find investors who plug your biggest gaps.

8. Build a sharp pitch deck

Keep it to 10–12 slides covering Problem, Solution, Market, Traction, Team, Financials, and Ask. For each, ask: “What’s the one fact I want investors to remember?” Practise delivering both a 3-minute “elevator” version and a 10-minute full pitch. A focused, flexible deck shows you can adapt to different investor styles.

9. Master your numbers

Write your key metrics (CAC, LTV, gross margin, burn rate, runway) on index cards and drill them until you can answer instantly, with context. For example: “Our CAC is £200, down from £300 six months ago, and our LTV is £1,500”.

10. Stress-test your pitch

Schedule at least three mock pitches with founders, mentors or friendly angels – basically anyone you know who will be completely honest. Ask them to interrupt, challenge and throw curveball questions. Record the sessions so you can analyse your responses. By the time you’re in front of real investors, nothing should catch you off guard.

11. Build and track a pipeline

Create a spreadsheet with 20–30 target investors. Log who introduced you, when you last spoke, what stage you’re at and next steps. Aim to always have 5–10 active conversations. Fundraising is often a six-month marathon, so managing it like a sales funnel helps you stay organised and avoid relying on a single lead.

12. Keep execution visible

While raising, keep the business moving forward, continue to sign new customers, announce partnerships and ship product updates. Share short updates with prospective investors (e.g. “We added three new clients this month, bringing MRR to £X”). It proves you’re executing regardless of fundraising and gives them a sense of urgency to join a moving train.

Kitt Medical’s top tip for attracting investment

For Zak and James, proving the business with prototypes and securing long-term contracts mattered, but what resonated most with investors was their passion for solving the allergy crisis. Zak’s experience of living with a severe nut allergy gave the company authenticity and urgency that investors could see immediately.

That conviction carried through in every pitch, helping them secure angels, win over Dragons and build trust that this was more than a good idea. Their advice is simple: let your passion show. Data gets attention, but belief in your mission is what convinces people to back you.