What investors notice fast and how to fix it before you pitch
You walk into the room. Slides ready. Story ready. You start strong.
Then the faces go still.
Questions get polite. The meeting ends early.
What happened?
Most failed raises do not fall apart on one big thing.
They slip on small, obvious things that were easy to fix.
Here are the red flags investors spot in minutes, and simple ways to clean them up.
1) The problem is fuzzy
If you cannot say the pain in one clear line, you lose the room.
Fix it: write one plain sentence. Who hurts, when, and why. Then add one true story that makes it real.
2) No proof of demand
Zero users. No pilots. No letters of intent. Only hope.
Fix it: run a small test. Show signups that turn into active use. Show a paid pilot. Even five real customers beat a pretty deck.
3) Vanity numbers
Total page views. Big mailing list. Social likes. No signal of value.
Fix it: show numbers that tie to value. Activation, retention, revenue, gross margin, payback on a new customer.
4) A cloudy model
No one can tell how you make money. Prices move every week. Costs are a guess.
Fix it: write a simple model. Who pays. How much. What it costs to serve them. What one dollar in turns into after costs.
5) Vague use of funds
You ask for two million, but the plan is a blur. A big hiring list with no reason.
Fix it: show a crisp plan for the next 12 months. People, product, growth, and a short note on why each item matters now.
6) A messy cap table
Too many tiny notes. Early friends took a large piece. A past founder left with a big stake.
Fix it: clean it up. Convert old notes. Reclaim dead equity if you can. Show that the team in the room holds real ownership.
7) Team gaps with no plan
You lack a core skill and pretend it does not matter.
Fix it: name the gap, then show the plan. An advisor, a contractor now, a first hire by a set date. Investors do not need perfect. They need a path.
8) No answer on churn
People try the product but do not stay. You cannot say why.
Fix it: talk to users who left. Share top reasons. Show one fix you have shipped and one you will ship next.
9) Risk hand waving
No view on data rules. No plan for compliance. IP unclear.
Fix it: list the top two risks and your first steps. A short note from a lawyer or a checklist goes a long way.
10) Timeline with no milestones
You promise growth but have no map.
Fix it: show a simple milestone plan. Each quarter has two or three goals that tie to cash, product, and users. Add the one number that will prove the plan worked.
Quick reality checks before you pitch
- The two line test: Write your two lines on paper. Line one is the pain. Line two is how you fix it today. If it sounds like fog, keep working.
- The traction table: Make one small table with five rows. Rows are month, new users, active users, revenue, and churn. Real numbers beat story.
- The one page plan: One page that shows use of funds, milestones, and the model. If you cannot fit it on one page, it is not clear enough.
- The data room snack pack: Keep it light but ready. Deck, cap table, model, traction table, product demo, top three customer quotes, and basic legal docs.
- Coachability: If you get tense when pressed, investors notice. It is fine to push back. It is not fine to act like you know it all. Curiosity is a green flag.
Small fixes that lift your odds fast
- Start the pitch with the pain. One story. One person.
- Show the product in two minutes. Let it breathe.
- Share a short customer quote in their own words.
- Speak numbers in plain terms. No buzzwords.
- Ask for the right amount. Enough to hit clear milestones.
- Close with what you will send next and when.
A simple close that works
When the meeting ends, say what you will share and by what date. Then do it. Keep promises, even the small ones. Trust builds on small promises kept.
Funding is not a magic trick. It is a clear story, real proof, a clean deal, and a plan you can own. Remove the red flags. Make the next meeting easy to say yes to.
Getting ready to raise and want a second set of eyes?
I help founders clean up the story, the numbers, and the plan so investors lean in. If you want honest prep and a tighter pitch, let us talk. Please get in touch.