Securing funding is one of the biggest challenges for early-stage startups. With thousands of pitches flooding investors’ inboxes, standing out is no easy task. At FIRSTPICK, we review more than 1,000 startups a year and hold over 10 first meetings weekly. Based on that experience, here are the key things you should do and avoid when applying for funding.
😎 DO’s: How to Make a Strong First Impression
1. Research Before You Reach Out
Not every investor is the right match for your startup. Before applying, take the time to research their investment focus, stage, industry, geography, and ticket size. Understanding these preferences helps you target the right investors and significantly increases your chances of success.
➡️ Example: If you’re a pre-seed SaaS startup, reaching out to a Series B investor in biotech won’t get you funded.
The best startups I’ve seen are those that truly do their homework. One team stands out in particular – they came to us with a clear understanding of why they wanted to join our accelerator. Before applying, they had even contacted one of our portfolio companies to ask whether FIRSTPICK genuinely adds value. That level of preparation and genuine curiosity made a strong impression and made our due diligence process far smoother. They were already thinking like partners.
2. Make Your Pitch Simple and Easy to Understand
Your investor deck should be clear, concise, and tailored to the fund you’re pitching. Investors often skim decks in under three minutes – make every slide count.
✅ Clear problem statement
✅ Market size and opportunity
✅ Traction and metrics
✅ Financials (burn rate, runway, funding needs)
✅ Team and why you’re the right founders
✅ Competitive landscape and differentiation
✅ Go-to-market strategy and execution plan
I’m most impressed by founders who deeply understand their competition and can clearly explain their go-to-market strategy. If a startup has done its research, and I can’t find a strong competitor easily – that always catches my eye.
3. Show Traction or Insight That Proves Demand
Customer insight is one of the strongest reasons to invest. At FIRSTPICK, we look for any sign of user validation. Even at early stages, testimonials or pilot users make a real difference.
➡️ Example: “We hit €2K MRR from 5 test users, and have a pipeline worth €20K.”
We invest in both pre-revenue and revenue-generating startups, but in all cases, we want to validate the demand. One of the most impressive examples I’ve seen was a B2C startup that ran a fake-door test to prove interest. It showed both scrappiness and an understanding of the metrics they’d need at scale.
4. Be Transparent About Challenges
Every startup hits obstacles. VCs value founders who are honest about those challenges and can show how they plan to overcome them.
➡️ Example: If user acquisition is slow, don’t hide it – show how you’re experimenting with new strategies.
I’ve seen some fascinating pivots. One standout example: an AI EdTech startup shifting to defence tech. When founders identify a stronger use case and adapt accordingly, we see that as a positive signal – not a red flag.
5. Explain How You Will Use the Funds to Hit the Next Milestone
Investors want to know where their money will go – and whether your plan makes sense. Be specific about your hiring roadmap, product development goals, or customer acquisition budget.
💡 While you may not have a concrete five-year plan, it helps to share your broader vision. We want to understand whether you’ve considered exit paths and how you’re thinking long-term.
➡️ Example: “With the €500K round, 60% will go to salaries and team expansion, and 20% to marketing – to reach €35K MRR and raise a €2M round.”
6. Follow Up and Keep the Relationship Warm
Securing investment often takes multiple touchpoints. Even if an investor says no, follow up. Ask for feedback. Share updates. Relationships compound over time.
➡️ Use a simple investor CRM – we often recommend the Ventury.app – to track conversations and follow-ups.
I’ve seen startups stand out simply by keeping in touch. One team building a nutrition app offered to demo new features after each product update. We haven’t invested (yet), but we’re rooting for them – and supporting them with intros and feedback where we can.
😵💫 DON’Ts: Common Mistakes That Kill Deals
1. Applying Without a Clear Funding Strategy
Avoid vague ranges or unstructured asks. Clarity builds trust.
❌ “We need between €500K and €2M.”
✅ “We’re raising €750K to reach €50K MRR in 12 months, focusing on product development and GTM.”
I’ve seen startups shift their ask drastically within two months – from €3M to €350K – without explanation. That’s a red flag.
2. Overcomplicating the Pitch
Avoid excessive jargon. It clouds your message.
❌ “We are a deeptech LLM fintech startup revolutionising invoicing across 70% of the market.”
✅ “We help SMEs automate invoicing using AI, reducing admin time by 50%.”
In too many first calls, I’ve seen founders spend 80% of the time explaining the product, leaving no space to talk business. It weakens the entire conversation.
3. Hiding or Exaggerating Numbers
Investors will do their homework. Misleading figures damage your credibility.
➡️ Example: Saying “10,000 users” when only 1,000 are active.
➡️ Example: Listing major brands as “clients” when they’re just pilot conversations.
I once had a founder say they were “close to a term sheet” – but it turned out they’d just submitted an online form. Trust is hard to win back after that.
4. Expecting an NDA
Most investors won’t sign NDAs early on – and that’s normal. Your execution is what matters. In rare deep-tech or highly sensitive cases, NDAs can come into play during due diligence. But don’t expect them upfront.
5. Over-reliance on a Future Event to Justify Funding
Don’t pin your pitch on a deal that hasn’t happened yet. If it’s “two weeks away”, an investor might just wait those two weeks.
I’ve seen this firsthand – a founder promised a major Lithuanian grocery chain contract within days. Months later, the deal was still “almost done”. The opportunity lost its momentum.
6. Spamming Investors with Mass Emails
Investors can tell when you’ve sent the same generic pitch to 50 people. Personalisation wins.
➡️ Refer to a past investment or portfolio company that’s relevant to your startup.
I receive 10-15 cold messages per week. The ones that catch my attention reference our portfolio or show real insight.
7. Neglecting Your Team’s Strength
At FIRSTPICK, the founding team is our most important investment criterion. If your deck doesn’t highlight your co-founders or their relevant experience, you’re missing a huge opportunity.
➡️ Emphasise past wins, deep domain knowledge, or founder–market fit.
The most compelling pitches I’ve seen start with the team – who they are, why they care, and why they’re the right ones to solve this problem.
💡 Here’s one of my favourite pitch examples
8. Asking for Too Little Money
Underfunding is just as risky as overfunding. If your project is capital-intensive, asking for too little will raise concerns.
➡️ If similar solutions on the market cost €2-5M, asking for €200K won’t feel credible.
One team wanted to build an AI infrastructure product with just €200K. The market realities didn’t match their ask – and that mismatch made it hard to take the pitch seriously.
While the goal of fundraising is to secure capital, the best outcome is finding a long-term partner who believes in your vision. By avoiding common mistakes and focusing on fit, honesty, and preparation, you’ll improve your chances significantly.
If this helped you prep for your raise – brilliant. If you’re currently fundraising, check out our website or apply here.