1. Strong Unit Economics

Investors want to see proof that every dollar spent brings a measurable return. CAC (Customer Acquisition Cost) vs. LTV (Lifetime Value) ratios are under the microscope.

2. Sustainable Growth

Gone are the days of “growth at all costs.” Startups need to show that their growth is efficient, capital-light, and capable of reaching breakeven within a reasonable timeframe.

3. Clear Market Opportunity

Investors expect a clear articulation of TAM (Total Addressable Market), SAM, and SOM, along with evidence of product-market fit.

4. Founder-Market Fit

Founders who deeply understand the problem space and have relevant expertise stand out. Passion and grit still matter—but so does credibility.

5. Risk Mitigation

Startups that proactively address regulatory, technical, and market risks earn investor trust faster. Transparency is key.

6. Impact & ESG

Environmental, Social, and Governance (ESG) factors are no longer optional. Many VCs now have mandates to invest in responsible, sustainable companies.

7. Exit Strategy

Investors want to know how they’ll realize returns—via acquisition, IPO, or secondary sales. A realistic, time-bound exit plan is crucial.

8. Competitive Advantage

Clear moats—whether through technology, partnerships, or network effects—differentiate startups in crowded spaces.

9. Traction & Metrics

  • MRR/ARR growth rate
  • User retention and churn rates
  • Gross margin improvements
  • Sales cycle efficiency

10. Storytelling That Inspires

Even in a data-driven world, compelling storytelling matters. Founders must communicate a vision that excites investors and paints a picture of the future.