At Robot Mascot, we’ve helped countless businesses secure the funding they need to grow and thrive. We understand the complexities of the investment landscape and have worked with founders at every stage of the journey – from pre-seed startups to scaling businesses on the brink of major growth. With our expertise, we’re perfectly placed to guide you through this process, ensuring you’re well-prepared to attract the right investors and build strong, lasting partnerships.

This guide is here to help you decode that process. We’ll walk you through the journey from understanding your funding needs to crafting the perfect pitch and building relationships with investors that will fuel your growth. Whether you’re just starting out or ready for the big leagues, this is your roadmap to securing the investment your business deserves.

Understanding your funding needs

Before diving headfirst into the world of investment, it’s critical to understand where your business is on its growth journey and what kind of support you need. The investment landscape is vast and without a clear understanding of your funding stage and goals, you risk approaching the wrong investors or seeking the wrong amount. It’s a bit like trying to run before you’ve learned to walk – both in terms of where your business is and how you articulate your needs.

Identify your stage

Are you at the pre-seed stage, just getting your idea off the ground, or are you a scaleup looking to fuel your next phase of growth? The distinction matters, because investors align their interests with different stages of business development. Pre-seed and seed stages typically involve funding to prove your concept or get your first product to market. At this point, you’ll likely be looking for angel investors – those who are willing to take a chance on an unproven concept because they believe in the founder’s vision – or small venture capital funds that focus on early-stage ventures.

READ: Funding rounds explained – a guide for startups

At Series A, the stakes rise. You’ve validated your product-market fit and now you need to scale. At this point, you’re looking for larger venture capitalists (VCs) who can bring not just capital but connections and expertise to help you break into new markets or refine your operations. Series B and beyond are where the bigger fish swim – these investors focus on rapidly scaling successful businesses. Here, you’ll often be talking to larger institutional investors, private equity firms and even strategic investors who are keen to leverage your business to complement their own.

Each stage is a stepping stone. Identifying where you are means understanding both your current traction and what type of investors are most likely to believe in your business at this point.

Clarify your funding goals

It sounds simple, but understanding how much money you need – and what you’re going to do with it – can be trickier than it seems. There’s no one-size-fits-all approach to funding needs, but you must be crystal clear on your objectives. Is the capital for product development? Are you expanding your team, scaling your marketing efforts, or entering a new market? Knowing exactly where the money is going allows you to present a focused case to investors. Broad or vague funding goals won’t cut it. Investors want to see that you’re making every penny count.

READ: How to Set Business Objectives

To figure this out, break down your business goals into specific milestones. Then, quantify the costs associated with achieving those milestones. A good rule of thumb: overestimate slightly to ensure you don’t run into cash flow problems later, but don’t inflate the numbers – savvy investors will spot that from a mile away. The funding you need to take your business from point A to point B must be grounded in data, not fantasy.

Types of investors

Once you’ve nailed down your stage and funding needs, it’s time to explore the types of investors that can support you. Each investor type comes with different expectations, timelines and involvement.

1. Angel investors: Often individuals or groups of high-net-worth individuals, angel investors are typically involved in the earlier stages of a business. READ: A Complete Guide to Angel Investors for Small Businesses
2. Venture capitalists (VCs): VCs are professional investors who manage pooled funds from individuals and institutions. READ: What is venture capital and how does it work?
3. Crowdfunding platforms: Crowdfunding, through platforms like Crowdcube or Seedrs, can be an excellent way for UK startups to raise funds while simultaneously building a community of supporters. READ: Crowdfunding For Startups: The Complete Beginner’s Guide
4. Private equity (PE): Private equity firms usually come into play during later stages – Series B and beyond. PE investors are typically interested in businesses that are well-established and generating significant revenue.
5. Government grants and schemes: The UK offers several schemes that can provide vital funding without giving away equity. The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are particularly attractive to investors, offering generous tax relief in exchange for investing in early-stage companies.

Understanding the funding landscape is about more than just knowing who to approach. It’s about aligning your business with the right type of investor for where you are now and where you want to go. With the right investors behind you – whether they’re angels, VCs, or backers through crowdfunding – you’ll be better positioned to secure the funding you need to drive your business forward.

READ: Seven different types of investors and how to win them over

Creating a solid business plan and pitch deck

Securing investment is as much about capturing the hearts of investors as it is about convincing their heads. To do that, you need more than just numbers – you need a narrative. A compelling story is at the heart of every successful pitch, woven throughout your business plan and pitch deck. Investors are bombarded with data and figures, but a story that connects on a human level sets you apart. It shows not just what you’re building, but why it matters.

Crafting a compelling story

The backbone of every pitch is a well-crafted story. It’s not just about selling a product, it’s about painting a vision of the future – one where your business has solved a meaningful problem. Begin by telling the story of the problem you’ve identified. Why is it significant? Who does it affect? Make the problem real, relatable. The best pitches take complex, abstract issues and humanise them. Investors should be able to see the faces of the people you’re helping and feel the weight of the issue you’re solving.

Once the problem is clear, introduce your product as the solution. But avoid getting bogged down in features or technical details. Investors don’t need a product demo, they need to understand how your solution is going to change lives or improve the industry. Then, connect this solution to your company’s vision and mission. Why are you, as the founder, the best person to solve this problem? Why now? Storytelling in your pitch isn’t just fluff – it’s about tying together your passion, your product and your market opportunity into something that resonates emotionally and logically with investors.

READ: How To Structure A Pitch Deck

Business plan essentials

Once you’ve hooked your audience with a compelling story, it’s time to back it up with a robust business plan. A solid business plan does two things: it demonstrates that you understand your market inside and out and it shows you have a clear path to profitability. This isn’t just a document – it’s a blueprint for your business’s growth.

Here are the key components of a detailed business plan:

• Market analysis
• Financial projections
• Growth strategy
• Competitive landscape

Each section of your business plan works together to tell a cohesive story about your business, your market and your future growth. The detailed plan makes your bold vision seem achievable.

READ: How To Create Business Plans For Startups

Pitch deck key elements

The pitch deck is your chance to distil everything – your story, your business plan, your potential – into a clear and visually engaging format. A great pitch deck is concise, compelling and leaves room for discussion. Here’s what you need to include:

• Problem
• Solution
• Market size
• Traction
• Business model
• Financials

A strong pitch deck captures the essence of your business in just a few slides. It should tell a story, backed by evidence, that builds excitement for what you’re creating. Find out more in our guide: How To Structure A Pitch Deck.

How to find the right investors

Finding the right investors is like finding the right business partner – they need to believe in your vision and share your long-term goals, but they also need to bring something to the table. Whether you’re at the start of your entrepreneurial journey or scaling up, it’s not just about getting any investment, it’s about getting the right investment from people who will support you as your business grows. The difference between an aligned investor and a mismatch can be the difference between success and struggle.

Research investor profiles

The ideal investor is more than just a cheque writer. They’re someone whose values, experience and connections align with your business’s needs and vision. Investors fall into different categories, each with its own set of expectations and contributions.

Angel investors

What makes angels appealing, especially for startups, is their willingness to take risks on unproven ideas. But they’re not just offering capital – they’re often bringing industry expertise, a personal network and mentorship. The right angel investor can be a game-changer. If you find someone who’s already worked in your sector or has a passion for the problem you’re solving, their insights and introductions can accelerate your growth.

For UK entrepreneurs, look for angel investors who understand the local market but also have a global outlook, especially if your long-term vision involves international expansion. Many UK-based angel groups, like the UK Business Angels Association (UKBAA), offer a directory of active angels with sector specialisation.

READ: What Angel Investors Look For In A Startup

Venture capitalists (VCs)

If angels are more hands-on, VCs can bring both bigger capital and broader networks, but with a different set of expectations. VCs typically enter at the seed or Series A stage when you’ve got a proven concept and are ready to scale. They’ll expect a clear growth plan and a path to significant returns on their investment. VCs often take a seat on your board, guiding strategic decisions and bringing a more structured, data-driven approach to growth.

When looking for the right VC, it’s critical to choose one whose industry expertise aligns with your business. For instance, if you’re building a tech platform, you’ll want a VC with a track record of scaling software companies, not someone who typically funds consumer goods. Moreover, consider geographic relevance – working with a VC that knows the UK market inside-out but also has global connections can give you a major competitive edge.

Beyond the money, what makes an investor “right” for your business is alignment. You need to be sure that their vision for the business – particularly around the speed of growth, exit strategies and market direction – is in sync with yours. Misalignment here can cause friction later, so this is an area where due diligence on your part is key.

Where to find investors

Finding the right investors is a targeted process and fortunately, the UK has a robust ecosystem of platforms, networks and events designed to connect founders with investors.

UK-focused platforms: Platforms like AngelList UK, Seedrs and Crowdcube are excellent starting points for early-stage funding, especially if you’re looking for a mix of angel investors and crowdfunding opportunities. Crowdfunding can be particularly powerful for consumer-facing products where building a community of early adopters doubles as a marketing strategy.

READ: Top UK Angel Investment groups: National and Regional

Networking events

Attending events and pitching competitions is one of the most effective ways to meet investors face-to-face. London Tech Week is a hub for the UK’s startup scene, attracting investors, entrepreneurs and industry leaders. Pitching competitions like Pitch@Palace are also well-known for connecting founders with angel investors and VCs in the UK. These events not only give you a platform to present your business but also the opportunity to build relationships with investors over time.

Accelerators and incubators

Joining an accelerator like Techstars London or Entrepreneur First can put you in front of the right investors while also helping you refine your business model. Many investors actively scout accelerators for high-potential startups and the programmes themselves often have investor demo days where you’ll pitch to a curated audience of VCs and angels.

Startup hubs

Cities like London, Manchester and Cambridge are home to thriving startup ecosystems. Co-working spaces and hubs like WeWork Labs or Impact Hub host regular networking events where investors, founders and industry experts converge. These spaces provide a unique opportunity to connect with investors who are looking for high-potential businesses in specific sectors, whether it’s fintech, health tech, or green energy.

The key to finding investors isn’t just to cast a wide net, but to focus on the platforms and events where your ideal investors are likely to be. You’re looking for quality connections, not just quantity.

Find out more about investor outreach here.

Leveraging warm introductions

In the UK’s tight-knit investor community, warm introductions are often worth their weight in gold. It’s not just about who you know – it’s about who can vouch for you. Investors get pitched all the time, but if a trusted contact introduces you, you immediately cut through the noise. This is especially true in the UK, where business relationships are often built over time and trust is paramount.

How to get a warm introduction

Start by tapping into your existing network. You might be surprised how many second- or third-degree connections you have who know the investors you’re trying to reach. LinkedIn is invaluable here – don’t hesitate to ask for introductions if you see a mutual connection.

Joining industry groups or associations can also help you meet people who can eventually make an introduction. Organisations like The Entrepreneurs Network or the Institute of Directors (IoD) host events where you can meet individuals who have close ties with the investment community.

Why warm introductions matter

Investors rely heavily on their network to filter potential investments. If someone they trust introduces you, you’re entering the conversation with a level of credibility that a cold email simply can’t achieve. Moreover, investors are more likely to prioritise conversations that come from people they’ve already had successful partnerships with. This gives you a huge advantage, not just in getting a meeting but in having your pitch taken seriously.

Preparing for investor meetings

Once you’ve lined up investor meetings, the next challenge is making sure you’re thoroughly prepared. Investor meetings can be intense, but being ready to answer tough questions and present your vision with confidence can make all the difference. It’s about more than just pitching your idea – it’s about convincing investors you have a robust, scalable business they can believe in.

Anticipating questions

Investors will ask a range of questions designed to test your understanding of the business and the market. Being able to answer these confidently is vital to building trust. The key areas to focus on are financials, market size and growth potential.

READ: Important Questions Investors Ask and How Startups Can Answer

Financials

Expect investors to dig deep into your financials, from current revenue to burn rate. How are you using the capital you already have? What’s your runway and what will this new investment achieve? Prepare to discuss your gross margins, customer acquisition cost (CAC), lifetime value (LTV) and any debts or liabilities. For UK startups, investors may also ask about how R&D tax credits will impact your finances, as well as your eligibility for schemes like SEIS/EIS.

READ: How to Prepare Financial Projections for Potential Investors

Market size

Investors will want to understand the size of the opportunity. How big is your addressable market and how much of it can you realistically capture? Be prepared to provide specific market insights and consider how national (and global) legislation or regulation has influenced your sector either positively or negatively.

Growth potential

Investors are buying into your future, so they’ll want to know your growth strategy. How scalable is your product or service? Can you grow regionally and internationally? Investors will want to hear your plans for navigating obstacles and capitalising on new opportunities.

Anticipating these questions and answering them with clarity and detail not only boosts your credibility but also demonstrates that you’re thinking strategically about the future.

Practising your pitch

Pitching with confidence takes practice. You need to be able to convey your message clearly and succinctly, whether it’s a formal presentation or a casual conversation. Here are some tips to help you nail your pitch:

• Practise telling the story of your business.
• Enter pitch competitions.
• Practice makes perfect.

READ: How to overcome presentation anxiety

Building a strong relationship with investors

Securing investment is just the start. A strong relationship with your investors can be one of your greatest assets as your business grows. Investors bring more than just money – they bring expertise, connections and guidance that can accelerate your success. But that relationship requires care and attention from the beginning.

What investors look for

Investors aren’t just writing cheques, they’re looking for businesses that are scalable and capable of long-term success. At the top of the list are:

• Scalability
• Strong leadership
• Product-market fit

READ: Why Investors Want to Understand Your Strategic Thinking

Transparency and communication

One of the cornerstones of a strong relationship with investors is open, regular communication. Investors expect transparency and being upfront about both successes and challenges builds trust.

Investors appreciate being kept in the loop about key milestones and progress. This doesn’t mean daily emails, but monthly or quarterly reports detailing sales, customer growth and significant achievements can help build confidence in your management skills.

No business journey is without its bumps. If things aren’t going according to plan, don’t hide it. Be proactive – inform your investors, explain the problem and present a plan for how you’ll resolve it.

Balancing control and guidance

One of the trickiest aspects of working with investors is finding the right balance between retaining control of your business and benefiting from their expertise.

As the founder, you’ll want to maintain as much decision-making authority as possible, but investors will often request a seat on the board or certain veto rights. It’s important to negotiate terms that allow you to run the business without feeling micromanaged.

READ: 14 Questions You Should Ask Investors Before Taking Their Money

Investors bring valuable experience and their advice can often help you avoid pitfalls. A strong investor relationship means being open to guidance while ensuring you remain in control of the company’s direction.

It’s about creating a partnership built on trust and mutual respect. Done right, your investors will be among your most important allies.

Navigating Legal and Financial Requirements

Securing investment comes with a series of legal and financial requirements that can feel daunting, especially if it’s your first time raising capital. But with careful preparation and the right legal support, you can navigate this process smoothly.

Legal considerations

When an investor expresses interest in your business, it’s time to get the lawyers involved. There are key legal documents you’ll need to draft, review and agree on:

• Term sheets
• Shareholder agreements
• Articles of Assocaition

Due diligence process

Investors will conduct due diligence before finalising any agreement. This process involves a detailed examination of your business’s financials, legal status and overall health. Be prepared to provide:

• Financial records
• Intellectual property
• Contracts

Being organised and transparent during due diligence can help speed up the process and avoid last-minute surprises that could delay or derail the deal.

Valuation and equity negotiation

Negotiating valuation and equity is one of the trickiest parts of the investment process. You need to strike a balance between getting a fair valuation for your company and giving away enough equity to make the investment attractive to investors.

Valuing your company

Valuation is both an art and a science. While there are formulas to determine your company’s value, factors like market conditions, investor sentiment and growth potential will play a big role. UK founders should also consider sector-specific benchmarks to ensure their valuation is realistic.

READ: What Is My Startup Valuation, and How Do I Justify It to Investors?

Equity negotiation

Be clear about how much equity you’re willing to give up and what you expect in return. Keep in mind that investors are looking for a significant return on their investment, so they’ll want to secure a meaningful stake. However, don’t undervalue your company or give away more control than you’re comfortable with – this is where experienced legal advice is essential.

Navigating these legal and financial hurdles requires preparation and expertise. Working with trusted legal and financial advisors can ensure you protect your interests while securing the investment you need to grow.

READ: How Does Equity, Dilution and Shares Work In A Startup?

There’s a lot here, but click through to our supporting articles for more information on specific areas. And, of course, don’t forget you can get in touch and we can help you develop your pitch assets to help you secure investment.