David Fisher, Senior Investment Director at IW Capital: Here’s What Startups Need To Do To Get Noticed By VCs

Written by David Fisher, Senior Investment Director at IW Capital

 

Every year, thousands of founders across the UK start fundraising with high hopes. But the reality is that less than 1% secure venture capital funding. 

At IW Capital, we see over a thousand pitches a year and provide venture capital to select businesses operating in our target sectors of consumer, healthtech, circular economy and technology. Whilst we want to back business in fast-growth sectors, we’re looking for founders with clarity, discipline and the ability to build something that lasts.

There are universal traits that immediately pique investors’ interest, as well as specialisms depending on each investment house. Here is what matters to our investment team at IW.

 

The Founder Matters Most

 

Many venture capital firms invest in businesses, but what they really back are people. Founders who are visibly committed, who have made sacrifices, built momentum with limited resources and show real belief in their product or solution stand out as compelling investment opportunities.

Many of the founders we have backed are obsessed with the problem they are solving, as well as being focused, resourceful and aware of their own blind spots. No one builds a serious business alone, so we’re also looking at the quality of the founding team and whether the right functional skills – for example, technology, commercial, operational – are represented or in the pipeline.

 

Prove You’re Solving A Real Problem – At Scale

 

Many founders pitch their product without fully explaining the problem it solves or how painful and widespread that problem is. The best pitches start with data: the size of the market, the cost of inaction and the gaps in existing solutions. Regardless of sector, founders should demonstrate that their business addresses a clearly defined market need with a scalable solution capable of expanding across sectors or geographies.

 

 

Strong IP and Defensibility Are Important Factors

 

Investors are not solely focused on innovative ideas; they are equally concerned with defensibility. A key indicator of this is the presence of meaningful barriers to entry whether through protected intellectual property (such as patents, trade secrets, or proprietary formulations), technology developed in-house or significant client adoption. It must be clear why a well-capitalised competitor could not easily replicate the offering.

 

Capital Efficiency is Underrated and Crucial

 

In 2025, investor expectations have evolved with a heightened focus on capital efficiency. The era of “growth at any cost” has given way to more disciplined, outcome-driven approaches. The most compelling founders demonstrate a clear understanding of the distinction between necessity and ambition, prioritising strategic allocation of resources and delivering measurable progress from existing capital. Whether through customer acquisition, revenue growth or IP development, every pound raised is expected to show tangible impact.

 

Don’t Start Fundraising Before You’re Ready To

 

Many founders start raising before they’ve done their homework. Before approaching an investor, it’s crucial to know how much capital is needed and why, what type of funding is appropriate (SEIS/EIS, venture, debt, etc.), which firms invest in your stage and sector and what assets you need to prepare ahead of any meetings. Having clear financials, well-presented decks and an up-to-date data room with all of these materials is a positive indication of how the wider business is run. 

A broad, untargeted outreach strategy is rarely effective and often counterproductive. A focused, well-researched shortlist of investors aligned by sector, stage and investment thesis will yield far stronger results than sending dozens or hundreds of generic emails. And, given the long-term nature of investor relationships, making a thoughtful first impression is critical. Taking a proactive approach through tailored messaging, warm introductions or a direct conversation can significantly increase the likelihood of engagement and set the foundation for a productive partnership.

 

How To Stand Out

 

While there is no fixed formula for success, the startups that capture our attention tend to share several common qualities. They present their unique selling points with clarity, articulating precisely what sets them apart and why it matters. They show evidence of market traction, whether through customer adoption, pilot programmes, or letters of intent, that validate demand for their solution. Strong data discipline is also essential; founders should have a firm grasp of key metrics such as customer acquisition cost, lifetime value, margins, retention and cash runway. In addition, a realistic and well-considered growth strategy particularly if it involves international expansion or future funding rounds is a strong signal of maturity and foresight.

Crucially, successful founders understand that raising capital is not just about promoting their product but also about positioning the business as a compelling investment opportunity. The ability to effectively communicate the value of their company is a distinct skill, and one that can be strengthened through the support of advisors, mentors, or pitch training. Tenacity, combined with preparation and clarity, can significantly improve the likelihood of success. These are the qualities we look for – and continue to invest in.