7 Ways to Use Innovation to Attract Early-Stage Investors

This is where design sprints come into play.

For startups, especially in fast-moving sectors like FinTech and MedTech, the pressure to move quickly is immense. Investors want to see progress and potential and they want it fast. Design sprints – when done right – can be the accelerant that takes a raw concept to a polished prototype in just days. They bring the customer feedback loop into sharp focus, helping founders refine their ideas, address flaws and showcase their product’s unique selling points with precision. This method isn’t just about rapid development; it’s about solving real problems and mitigating risks, two factors that are music to any investor’s ears.

But here’s the catch: not all design sprints are created equal. Success depends on adaptability, open-mindedness and a willingness to abandon initial ideas when better solutions emerge. Founders who cling too tightly to their first concept risk missing out on the breakthroughs that investors crave. And, in today’s landscape, where AI is shaking up entire industries, startups need to prove that their tech – especially their AI – isn’t just buzzwords, but backed by solid architecture and genuine utility.

To help us explore this topic and offer valuable advice for startups, Robot Mascot’s Nicolas Ruston spoke to Jan Hauser, UK CEO of Applifting, whose extensive experience in driving innovation and scaling businesses makes him a trusted voice in the tech industry.

Jan explains how innovation, design sprints and technical strategy intersect to make or break a startup’s bid for investment. Whether you’re preparing to pitch or fine-tuning your MVP, understanding how to leverage these tools will help you stand out in an increasingly competitive field.

1. From your experience, what role does innovation play in attracting investors, particularly in the early stages of a startup?

Several factors propel startups on their hockey stick journey, and innovation is undoubtedly one of them, along with a fantastic team, timing, market positioning, and competition. Innovation often lies beneath the surface of the product definition; it helps you find your competitive advantage – whether that means being faster, more cost-efficient, or simply enabling something previously impossible.

Innovation isn’t exclusive to startups, it’s relevant to massive enterprises too. However, sometimes even a minor tweak in the user interface can be the most innovative feature.

2. Given the competitive landscape, what key elements do investors look for in a startup’s pitch and how can design sprints enhance these elements?

Investors primarily focus on understanding what you have done to mitigate the risk of failure before approaching them. A design sprint is a valuable tool in this regard. It closes the builder-customer feedback loop and provides a clickable prototype that visualises your idea, fine-tunes the customer journey and much more. Importantly, it prevents you from developing a non-viable product. Our most successful design sprints were those in which we realised the initial idea didn’t make sense and decided to go back to the drawing board. While investors look for various elements, a design sprint helps you assemble these building blocks and prepare effectively.

3. With your extensive background in software architecture, how do you see the integration of technical considerations within a Design Sprint influencing investor decisions?

It’s crucial to have a high-level architecture, understand the complexity of the build and outline a rough budget and roadmap. Creating a proof of concept (PoC), especially with AI innovations, is essential when there is significant uncertainty about the feasibility or accuracy of the models.

A PoC is another milestone on your investment journey and can be integrated into the design sprint, though it usually takes longer to develop. Always emphasise a step-by-step approach, lay down your milestones and adhere to the MVP approach.

For those seeking an external technology partner, I recommend our ebook, “How to Pick the Right Software Development Partner“, which will guide you through the process and focus areas.

4. What are the key elements that investors look for in a startup’s product prototype, and how can the design sprint help in perfecting these elements?

Investors look for several key factors in a prototype, such as usability, a clear demonstration of the USP, traction and evidence of testing with real users. The design sprint is an ideal methodology for this, focusing on user flows that highlight your USP. The process also enables you to anticipate and prepare for product-related questions that investors are likely to ask later.

Spending focused time on your product, user journeys and usability flows during the sprint can seem daunting, but it is far more efficient than spreading this effort over several months.

5. How do you adapt the design sprints process for different types of products, particularly in sectors like FinTech and MedTech, where Applifting has significant experience?

The design sprint process is adaptable across sectors. To ensure accurate domain knowledge, we dedicate time to preparation before the sprint, involving both our team and the client’s. During the sprint, we include the right mix of personnel from both sides and conduct expert interviews to gather essential insights and domain-specific nuances. This is a crucial part of the process.

6. From your perspective, what are the most common mistakes startups make during a design sprint that could hinder their chances of securing funding?

A common pitfall is when founders are overly committed to their original idea and closed to other perspectives that emerge during the design sprint. Founders should recognize that developing a USP and value proposition is an ongoing process and remain open to new ideas and challenges. It’s a never-ending journey.

7. What future trends do you see in the use of design sprints, especially in relation to securing investment for digital products, and how can startups prepare for these trends?

A recent trend in our industry is the organisation of AI Design Sprints, where AI specialists join the sprint team to focus on prototyping AI aspects of the product. Despite the simplicity of a GPT prompt interface, AI implementation isn’t straightforward—the commonly available models are just tools requiring careful architecture and design. We ensure the AI use cases are robust so that when our clients use the term ‘AI’, it is backed by substantial evidence. This focus on AI is increasingly important for fundraising.

Find out more about Applifting.