Anyone here invested in a startup before?

[DanielMDG]

Has anyone here invested in a startup (ideally a tech startup of some sort) at an early stage? I'm talking pre-seed or seed.

If so, how did you find the opportunity/how did the opportunity find you?

How quick was the process from first contact to the investment?

Was the investment for equity? Would you hypothetically have considered other structures at this stage (loans etc.)?

Just trying to better understand the mindset of investors!

 

[fisicx]

I nearly did once but pulled out when it became clear they didn’t have a viable business plan. The numbers didn’t add up and the likelihood they would be able to repay the investment tended to zero. They had woefully underestimated the cost of marketing.

Investors often invest in people not ideas. Show them a MVP and a solid business plan with 5 year growth projections that will return the investment + x% and they may be interested.

Expect to give away equity. Funding can be immediate, staged or delayed depending on the project.

Tech projects often struggle to get investment because the low barrier to entry. Showing you have remortgaged the house, got a second job and put every penny you own into the business helps.

 

[Mark T Jones]

60% of my customers are start ups at first deal stage.

Whilst I'm not an investor, I do get a lot of insight insight to both debt and equity

There are differences and there are similarities

The BIG similarly is the need to focus on whether the key individual(s) have what it takes to run and build a business.

The consistent difference is expecting on what form that growth should take.

As a wide sweep, lenders like low and steady where investors seek dynamic growth

 

[HFE Signs]

Just be careful, every investment/business is unique, the risks are very high

 

[Mark T Jones]

Just be careful, every investment/business is unique, the risks are very high

Yip. Gambling rules apply

If you don't understand it, don't bet on it

Don't bet what you can't afford to lose.

 

[Clinton]

How quick was the process from first contact to the investment?

If you're looking for quick, go find something else!

The large majority of founders are complete morons. They have no idea about business. They have zero understanding of finance or sales. They think that because they had "an idea", they're going to be billionaires tomorrow.

Well, mummy did tell them they were very clever ...and they do have a degree in media studies.

Their businesses will go down the pan - almost 100% of them.

If you want to play the odd exception to the rule, put aside enormous amount of time.

And patience! You won't believe the sh*t you'll hear on Pitch Road about "massive potential", "the next Uber" and other stuff pulled straight out of a bull's ass.

The only question around quick is about how quickly you'll lose your money.

 

[Paul Kelly ICHYB]

Asking a few questions on a forum and looking at a few SM posts will not get you into the mindset of an investor.

Starting & running businesses will help.
Failing in business will help.
Investing ing businesses will help.
Losing money in businesses will help.

Without experience & knowledge, do take the risk - it is the same thing for starting a business.

 

[NickGrogan]

Yes a couple of times.

Once, because I trusted them and knew they'd be successful, they were—nothing to do with the business plan.

Once, because they had something I wanted and it was a cheap way of getting it, they went bust as expected. I didn't invest because of the business plan.

I might do another one next week, as I like the guy. I don't have a business plan yet; it's just an idea.

 

[robertsnuffle5]

Although i have not personally invested in any startups before I have a few colleagues who have. For them it is a balancing act of believing in both the business plan and the person. But remember at the end of the day with a startup it is always a leap of faith!

 

[DanielMDG]

Yes a couple of times.

Once, because I trusted them and knew they'd be successful, they were—nothing to do with the business plan.

Once, because they had something I wanted and it was a cheap way of getting it, they went bust as expected. I didn't invest because of the business plan.

I might do another one next week, as I like the guy. I don't have a business plan yet; it's just an idea.

It seems like a lot of it for you at least is focused on personal relationships. If you don't mind me asking, were these from existing personal or professional relationships, or did they somehow reach out to you blindly at first?

 

[tony84]

I have a start up.
I met up with an investor/someone who knows investors - its someone I sort of know through a relative.

I met up with him and we had a good chat. But ultimately he did not want to invest as I did not have a solid marketing plan which was because I did not have the money. His view was that without sales it was not worth the investment. My view was that if I had sales, I would not need the investment.

But I think I am in a reasonably good position where I could get the money if I really needed it. I had just put in an amount that I was comfortable with, built the site etc and drew a line in the sand.

In the end, I ended up bringing my old SEO bloke on as a partner. I gave him a cut of the business for him to do his thing. Its taken a lot longer than I would have liked but ultimately I have to accept things will go at a slower rate.

In short, to get any sort of investment, I think you need to have proof of concept and a thorough marketing plan, if not sales already.

 

[DanielMDG]

I have a start up.
I met up with an investor/someone who knows investors - its someone I sort of know through a relative.

I met up with him and we had a good chat. But ultimately he did not want to invest as I did not have a solid marketing plan which was because I did not have the money. His view was that without sales it was not worth the investment. My view was that if I had sales, I would not need the investment.

But I think I am in a reasonably good position where I could get the money if I really needed it. I had just put in an amount that I was comfortable with, built the site etc and drew a line in the sand.

In the end, I ended up bringing my old SEO bloke on as a partner. I gave him a cut of the business for him to do his thing. Its taken a lot longer than I would have liked but ultimately I have to accept things will go at a slower rate.

In short, to get any sort of investment, I think you need to have proof of concept and a thorough marketing plan, if not sales already.

Appreciate the insight. Have you tried to reach out to VCs or anything similar away from your personal connections to raise the funds?

 

[NickGrogan]

It seems like a lot of it for you at least is focused on personal relationships. If you don't mind me asking, were these from existing personal or professional relationships, or did they somehow reach out to you blindly at first?

First one, professional relationship
Second one, via mutual connection, professional relationship
next one, professional relationship

 

[DanielMDG]

First one, professional relationship
Second one, via mutual connection, professional relationship
next one, professional relationship

Has anyone ever just reached out to you through LinkedIn for example to try and get you interested in an investment opportunity? And what do you think would be your reaction if they did?

 

[fisicx]

Has anyone ever just reached out to you through LinkedIn for example to try and get you interested in an investment opportunity? And what do you think would be your reaction if they did?

Used to get loads of these. It’s one of many reasons why I don’t use LinkedIn anymore.

I’ll invest in something I’m interested in and I think has a chance of success.

And I will want to see how much the business owners have invested themselves. Too often they have no money and expect investors to take all the risk.

 

[Mark T Jones]

And what do you think would be your reaction if they did?

Extreme suspicion

95% of finance scams revolve around either grants or investment (ie easy money)

Getting investment isn't easy - and anyone who implies it is should be treated with great caution.

 

[fisicx]

@DanielMDG - are you an investor or are you looking for investment?

 

[Clinton]

I had just put in an amount that I was comfortable with, built the site etc and drew a line in the sand.

Can you explain, please?

I hear this a lot and I genuinely can't understand it. Why would you draw a line in the sand AFTER building the site etc?

Is it perhaps a bit of a different story? Is it the case that you started off,did various stuff, built the site, found that sales is a lot more difficult than originally anticipated, decided that you needed more money for marketing, decided that it was too risky to re-mortgage the house and fund it yourself?

Because that's what often happens and when it does I tell the founder that if their original expectation of sales was wrong, why should I accept their new magic plan of marketing = sales = profit.

 

[Clinton]

Used to get loads of these. It’s one of many reasons why I don’t use LinkedIn anymore.

Strange. I use LinkedIn a lot and never get any of those! But then LinkedIn is what you make it. If you accept random connections requests from anybody and everybody, and you don't train your feed for a bit initially to tell it what you like and don't like, the algo will not understand what's of interest to you.

Same thing with DMs. I used to BLOCK anybody who sent me sh*t I didn't like. Now I get no DM spam in LinkedIn, believe it or not.

I still have some training of the algo to do. I made some mistakes in the past and accepted too many connections. I'm paying the price now. For the past several months, I've been deleting about 30-50 connections a day so as to rectify the earlier mistake. I've got connections down from about 10K to about 2.5K now.

@DanielMDG - are you an investor or are you looking for investment?

From context using his subsequent posts, his OP does seem like he's a founder, not an investor. If he's looking to get into the mind of the investor as he says, I have a long and detailed article on how to do just this: How to get into the mind of the investor.

I believe everything in that article is true, but maybe I wrote it only because it p*sses off a certain type of business owner who is looking to raise money or sell their business.

 

[fisicx]

Strange. I use LinkedIn a lot and never get any of those! But then LinkedIn is what you make it.

When I was a premium member I used to write a lot about loan calculations and how to add them to a website (because I was promoting my plugins). The bots must have thought I was some sort of loan company so kept asking for money for their fledgling payday loan companies.

 

[Mark T Jones]

Strange. I use LinkedIn a lot and never get any of those! But then LinkedIn is what you make it. If you accept random connections requests from anybody and everybody, and you don't train your feed for a bit initially to tell it what you like and don't like, the algo will not understand what's of interest to you.

Same thing with DMs. I used to BLOCK anybody who sent me sh*t I didn't like. Now I get no DM spam in LinkedIn, believe it or not.

I still have some training of the algo to do. I made some mistakes in the past and accepted too many connections. I'm paying the price now. For the past several months, I've been deleting about 30-50 connections a day so as to rectify the earlier mistake. I've got connections down from about 10K to about 2.5K now.



From context using his subsequent posts, his OP does seem like he's a founder, not an investor. If he's looking to get into the mind of the investor as he says, I have a long and detailed article on how to do just this: How to get into the mind of the investor.

I believe everything in that article is true, but maybe I wrote it only because it p*sses off a certain type of business owner who is looking to raise money or sell their business.

There's also a great sticky on the topic here https://www.ukbusinessforums.co.uk/threads/you-wont-get-investment-because.385696/

I've no idea which genius wrote it...

 

[Mark T Jones]

When I was a premium member I used to write a lot about loan calculations and how to add them to a website (because I was promoting my plugins). The bots must have thought I was some sort of loan company so kept asking for money for their fledgling payday loan companies.

Yesterday I connected with someone who does business loans (based in UK), wondering if they might be of use to my customers.

They immediately sent me a spammy message saying they were in UAE, and did my business want a loan? One message = 4 reasons to unconnect.

 

[tony84]

Can you explain, please?

I hear this a lot and I genuinely can't understand it. Why would you draw a line in the sand AFTER building the site etc?

Is it perhaps a bit of a different story? Is it the case that you started off,did various stuff, built the site, found that sales is a lot more difficult than originally anticipated, decided that you needed more money for marketing, decided that it was too risky to re-mortgage the house and fund it yourself?

Because that's what often happens and when it does I tell the founder that if their original expectation of sales was wrong, why should I accept their new magic plan of marketing = sales = profit.

When building the site, I was given a figure by the developers. I know to take those figures with a pinch of salt as problems crop up, things need changing etc etc. We picked parts of the site to get it to a stage when on the front it works, but behind the scenes it was not quite as automated as I would like - that would ultimately come if the site was a success.

I had a figure over and above the cost which built in a contingency, we hit that figure and then went over it a little bit to get what was needed done. This was before I was even able to make any sales.

But ultimatelyI had put in 5 figures which I realise to some investers thats not a lot. But to me it was a chunky amount. The site was not quite at a stage where I was happy, but it was a stage where it would work. I had some ideas on how to generate business, but yes it turned out to be a little harder than I expected - being the first to market is actually quite hard to cave out a market space (who knew haha).

Its interesting as I think we have 2 different views on the same thing. My view is that I have a 7 year old daughter. Im not prepared to gamble our future and risk her going without because I could not make it work. 20 years ago, I would have been all in and dealt with the consequences. But my risk appetite has changed now my priority is my daughter.

My general view is/was as an investor you either see the potential or you dont. If you dont, thats fine. I will make it a success but it wont become a success by throwing money at it. It will become a success in a slower more organic way. I am still first to market as we have launched and had a few little nibbles. But not enough to get anyone excited - but by all accounts that will come next year. We are on page 1-3 some some ok search terms, the harder ones to get to the top of will come good but the progress is slow and steady.

The lad that has come onboard to do the marketing/PPC side of things is very good, I have known him for around a decade, he used to work for me. He also has experience of raising funding from some previous investments he had. We have agreed as neither of us need the money from this project every sale will just be re-invested back in.

There is more than one way to skin a cat. We will get there, it will be a slower way than I would have liked but it comes with less risk.

 

[tony84]

Appreciate the insight. Have you tried to reach out to VCs or anything similar away from your personal connections to raise the funds?

No. I was talking to a customer of mine, he raised millions from some fairly well known people. He was telling me it all started with a conversation from one of the dads in the school playground.

I wouldnt know how to get in touch with those people short of sending an random message on linkedin or something which isnt for me.

 

[Clinton]

My view is that I have a 7 year old daughter. Im not prepared to gamble our future and risk her going without because I could not make it work. 20 years ago, I would have been all in and dealt with the consequences. But my risk appetite has changed now my priority is my daughter.

As an investor, I would walk away immediately on hearing that.

Investors don't want to invest in someone who's a "good dad".

They want to invest in someone who'll put the business first, who's driven, who's sticking his own neck out and putting his family's future on the line.

That's the kind of founder who'll MAKE it work.

There's also a great sticky on the topic here https://www.ukbusinessforums.co.uk/threads/you-wont-get-investment-because.385696/

Nice one!

 

[tony84]

As an investor, I would walk away immediately on hearing that.

Investors don't want to invest in someone who's a "good dad".

They want to invest in someone who'll put the business first, who's driven, who's sticking his own neck out and putting his family's future on the line.

That's the kind of founder who'll MAKE it work.



Nice one!

Thats fair enough. Thats not me anymore.

Im not looking for an investor. The feedback I actually got (without mentioning my priorities) was that without sales nobody would invest. My argument was if I had saes I would not want or need an investor. Seemed like a very catch 22 discussion.

It almost feels like for taking such a big part of the business they want very little risk.

I suppose I am fortunate in that I could finance the whole thing myself if I wanted. But as with any risk, you should know when to stop.

As I mentioned, there is more than one way to skin a cat. I brought on a partner who I know and trust. We are both good at what we do so if it was meant to be, I am confident the 2 of us can make it work. If not, then I have not lost more than I can afford to write off.

 

[Mark T Jones]

Thats fair enough. Thats not me anymore.

Im not looking for an investor. The feedback I actually got (without mentioning my priorities) was that without sales nobody would invest. My argument was if I had saes I would not want or need an investor. Seemed like a very catch 22 discussion.

It almost feels like for taking such a big part of the business they want very little risk.

I suppose I am fortunate in that I could finance the whole thing myself if I wanted. But as with any risk, you should know when to stop.

As I mentioned, there is more than one way to skin a cat. I brought on a partner who I know and trust. We are both good at what we do so if it was meant to be, I am confident the 2 of us can make it work. If not, then I have not lost more than I can afford to write off.

I'd see this as an entirely positive story

You were essentially tyre-kicking (nothing wrong with that, never hurts to look around)

You got good, straight feedback

Took it on board, worked out your priorities and preferable course of action.

Job done.

Unfortunately, for every you there are 100 naive/arrogant dreamers who reject any feedback they don't like whilst sucking up the platitudes of sharks and scammers.

We see a steady stream of them on here, and I've no doubt that those sharks are watching and ready to jump (or whatever sharks do)

 

[Clinton]

The feedback I actually got (without mentioning my priorities) was that without sales nobody would invest. My argument was if I had saes I would not want or need an investor. Seemed like a very catch 22 discussion.

Nope, no catch 22.

Your job as a founder is to demonstrate proof of concept. If you haven't demonstrated it any other way, you have to demonstrate it with sales.

If you got your business to the point where you are ready for sales but have now run out of money, it only demonstrates that your initial expectations were wrong, your planning was inadequate, your optimism that "sales will just happen because this product is so kick-ass" was misplaced, your enthusiam for the product / service clouded your view about the quality of the business proposition etc.

But, as Mark says, if you take that feedback, accept that your initial forecasts and expectations were too rosy, that the product / service doesn't just sell itself as you expected, that you've now got a viable sales operation going and that it is scalable, investors would be more interested if you returned to fund raising.

It almost feels like for taking such a big part of the business they want very little risk.

And that came as a surprise?

 

[tony84]

I'd see this as an entirely positive story

You were essentially tyre-kicking (nothing wrong with that, never hurts to look around)

You got good, straight feedback

Took it on board, worked out your priorities and preferable course of action.

Job done.

Unfortunately, for every you there are 100 naive/arrogant dreamers who reject any feedback they don't like whilst sucking up the platitudes of sharks and scammers.

We see a steady stream of them on here, and I've no doubt that those sharks are watching and ready to jump (or whatever sharks do)

I suppose thats fair.
Its not how I looked at it but sometimes you have a conersation and you cant find a point where everyone comes out happy. By the time I get to a stage where they would be happy, I think it is very unlikely I would want to take on investment.

 

[DanielMDG]

@DanielMDG - are you an investor or are you looking for investment?

I've had my own businesses before, currently working as a freelancer. Have been getting more involved in the tech world but from the company side, and just interested to learn more and get a more full understanding of how investors approach the flip side of this.

 

[tony84]

Nope, no catch 22.

Your job as a founder is to demonstrate proof of concept. If you haven't demonstrated it any other way, you have to demonstrate it with sales. - I have proven proof of concept, it works.

If you got your business to the point where you are ready for sales but have now run out of money, it only demonstrates that your initial expectations were wrong, your planning was inadequate, your optimism that "sales will just happen because this product is so kick-ass" was misplaced, your enthusiam for the product / service clouded your view about the quality of the business proposition etc. - I had not quite got to that stage, I was about 2-3 months away at the time. But 100%, I could have planned things a little better and built in a bigger contingency.

But, as Mark says, if you take that feedback, accept that your initial forecasts and expectations were too rosy, that the product / service doesn't just sell itself as you expected, that you've now got a viable sales operation going and that it is scalable, investors would be more interested if you returned to fund raising. - Sales are not there yet, we have had a couple but nothing significant. We expect it to pick up in spring as that is when the market tends to pick up. But by that point, if sales are even 10% of what we are expecting, I wont want an investor.



And that came as a surprise?

It did. From what I have been told, I see no benefit of an investor personally. But I suppose the fact that I can cash in some investments of take out a loan makes me less needy of one.

 

[mikedoyle]

Investing in a startup at the pre-seed or seed stage can be an exciting, albeit risky, venture. Here’s some insight based on my experience:

How I Found the Opportunity​

I’ve come across opportunities through a mix of networking and startup events. Platforms like AngelList and LinkedIn also helped me discover early-stage startups actively seeking funding. However, some of the best opportunities came via personal recommendations from friends and colleagues who are involved in the tech ecosystem.

Timeline from First Contact to Investment​

The process can vary widely. For one deal, it took about two months from the initial pitch to signing the agreement. This included multiple meetings with the founders, reviewing the pitch deck, conducting due diligence, and negotiating terms. However, in cases where there’s a strong referral or a proven founder, the timeline can be shorter—around a few weeks.

Investment Structure​

Most of my investments were for equity, either direct ownership or through convertible notes, which convert into equity during a future funding round. Convertible notes are popular in early stages as they simplify the process and delay valuation negotiations until the startup has more traction. I’d personally be cautious about loan structures unless it’s clear how the business will generate sufficient cash flow to repay.

Mindset of Investors​

As an early-stage investor, my focus is on the team’s vision and their ability to execute. At this stage, the startup might not have much traction or revenue, so the strength of the founding team, the problem they’re solving, and the size of the market are key factors. A strong business plan is crucial, but I also look for adaptability and resilience in the founders.

If you’re planning to approach investors, clarity and confidence in your pitch, as well as transparency about risks, can make a huge difference!

 

[DanielMDG]

Investing in a startup at the pre-seed or seed stage can be an exciting, albeit risky, venture. Here’s some insight based on my experience:

How I Found the Opportunity​

I’ve come across opportunities through a mix of networking and startup events. Platforms like AngelList and LinkedIn also helped me discover early-stage startups actively seeking funding. However, some of the best opportunities came via personal recommendations from friends and colleagues who are involved in the tech ecosystem.

Timeline from First Contact to Investment​

The process can vary widely. For one deal, it took about two months from the initial pitch to signing the agreement. This included multiple meetings with the founders, reviewing the pitch deck, conducting due diligence, and negotiating terms. However, in cases where there’s a strong referral or a proven founder, the timeline can be shorter—around a few weeks.

Investment Structure​

Most of my investments were for equity, either direct ownership or through convertible notes, which convert into equity during a future funding round. Convertible notes are popular in early stages as they simplify the process and delay valuation negotiations until the startup has more traction. I’d personally be cautious about loan structures unless it’s clear how the business will generate sufficient cash flow to repay.

Mindset of Investors​

As an early-stage investor, my focus is on the team’s vision and their ability to execute. At this stage, the startup might not have much traction or revenue, so the strength of the founding team, the problem they’re solving, and the size of the market are key factors. A strong business plan is crucial, but I also look for adaptability and resilience in the founders.

If you’re planning to approach investors, clarity and confidence in your pitch, as well as transparency about risks, can make a huge difference!

Really appreciate the comprehensive reply, definitely gives a good outline of how it works from the investor side of things.

I'm assuming from this you were investing at seed or pre-seed? If so, at this point in the startup life-cycle, what would you say is more important? A proof of concept or a clear revenue model? Can you have one without the other in your eyes?

 

[fisicx]

I'm assuming from this you were investing at seed or pre-seed? If so, at this point in the startup life-cycle, what would you say is more important? A proof of concept or a clear revenue model? Can you have one without the other in your eyes?

It all depends on the project. No two will ever be the same. But in general I expect to see a reasonable proof of concept and a viable income stream. There has to be more than just an idea.

 

[Clinton]

It all depends on the project. No two will ever be the same. But in general I expect to see a reasonable proof of concept and a viable income stream.

And the investor will then still (probably) lose all his money!

Mark Cuban, of Shark Tank fame, invested in numerous startups from that version of Dragons Den. On aggregate, across all his investments, he's lost money, not made it!

That's despite all the advantages he has - experience, contacts, publicity from the programme, what not.

I don't know why anybody invests in startups. They're a bloody PITA. It's a very, very high risk game and the large majority of founders are completely clueless. When they ask for money, it's not unlike the mind-numbingly insane pitch here.

Most don't know the first thing about business (and are not willing to learn!)

There is a very, very rare case of a startup being successful. Those stories get blown up in the press. What doesn't get the oxygen of publicity is the everyday story of the investor losing his shirt.

Anybody investing in startups is either some super genius or insane or needs to get treated for his gambling problem.

 

[tony84]

Maybe its the investors who are clueless? (when it comes to investing).
Maybe they are making the wrong investments and are prioritising the wrong things.

 

[Mark T Jones]

Maybe its the investors who are clueless? (when it comes to investing).
Maybe they are making the wrong investments and are prioritising the wrong things.

There are plenty of them - the richest source being business owners who have just completed a first-time exit.

 

[Clinton]

Maybe its the investors who are clueless? (when it comes to investing).
Maybe they are making the wrong investments and are prioritising the wrong things.

Ah, yes, that's another thing with most founders - it's always somebody else's fault.

Even their own failure, their lack of planning, their inflated opinion about how good their idea is, their inability to build a team, their complete incompetence with marketing, everything!

It's always the other guy's fault.

 

[tony84]

Its always nice to have a non biased discussion.

 

[mikedoyle]

Really appreciate the comprehensive reply, definitely gives a good outline of how it works from the investor side of things.

I'm assuming from this you were investing at seed or pre-seed? If so, at this point in the startup life-cycle, what would you say is more important? A proof of concept or a clear revenue model? Can you have one without the other in your eyes?

At the seed or pre-seed stage, both proof of concept (PoC) and a clear revenue model are important, but their relative importance can depend on the specifics of the startup and its market. Here’s how I’d break it down:

1. Proof of Concept (PoC): At the early stages, having a solid PoC is often the priority. Investors want to see that your product or service actually works, that there’s some indication it can solve a real problem, and that people (whether in the form of customers or users) are engaging with it. A PoC shows potential investors that there’s technical feasibility and product-market fit. Without this, even a brilliant revenue model can be meaningless, because there’s no foundation to build on.
2. Clear Revenue Model: That being said, even if you have a great PoC, a well-thought-out revenue model adds immense value, particularly as you move toward seed funding or scaling. Investors want to know how the business will make money long-term. But at the very early stages, this doesn’t need to be perfect. Many successful startups adjust their revenue models as they learn more about their customers and market. So, while it’s important to have an initial idea, you don't necessarily need to have a fully validated or proven revenue model from day one.

Can you have one without the other? Technically, yes. In the very early stages, you might have a PoC without a clearly defined revenue model, especially if you’re still iterating on product-market fit. Conversely, you could have a revenue model but struggle with technical execution or product-market fit, which would make it hard to execute on that model effectively.

However, I’d argue that PoC without any consideration for revenue can be risky. At some point, you need to start thinking about how you will monetize your product, even if it's a rough idea. The most successful seed-stage companies are those that have an evolving PoC and a revenue model that’s flexible but still grounded in reality. As a startup matures, refining both PoC and revenue becomes an iterative process.

In short: early on, focus on proving that you have something people want (PoC), but don’t completely ignore how you'll eventually turn that into a sustainable business (revenue model). A balance of both, even if one is more developed than the other, is key to attracting investors and setting up your startup for long-term success.