The Startup Funding Consultancy Process: What to Expect

However, navigating the complexities of fundraising, from crafting the perfect pitch to satisfying rigorous due diligence, can be overwhelming for even the most determined entrepreneurs. Without the right guidance, many promising startups struggle to secure the investment they need to succeed.

That’s where startup consultancies like us come in. By providing tailored support at every stage of the funding process, we help startups build a solid foundation, connect with the right investors and overcome common challenges.

In this article, we’ll walk you through what to expect from the startup funding consultancy process and how it can set your business up for success.

And don’t forget, we’d love to help you and your startup prepare for investment. Find out more about our PitchReady service here.

Step 1: Initial consultation and discovery phase

The initial consultation is designed to extract critical information about your startup, ensuring a deep understanding of your strategic thinking before moving into the next phase. Rather than offering advice at this stage, the consultancy will focus on gathering insights across key areas, stress-testing your current approach, and identifying any potential gaps that need addressing.

This process acts as a dry run for investor due diligence, helping to surface the strengths and weaknesses in your business model before developing funding assets in Step 2. The consultancy will explore:

• Business proposition – What the business is and its core offering
• Problem and solution – The specific problems the business addresses
• Market opportunities – Current trends and growth potential
• Market risks – Challenges and threats in the competitive landscape
• Scalability and market size – The potential for expansion and long-term viability
• Commercialisation and revenue model – How the business generates revenue
• Marketing and go-to-market strategy – Plans for customer acquisition and brand positioning
• Key and valuable team members – The expertise and strengths of the leadership team
• Funding plans and strategy – Investment requirements and approach to securing funding

By extracting this information early, the consultancy ensures that your business case can be thoroughly analysed in the next phase, leveraging strengths and addressing weaknesses to create a compelling and investor-ready proposition.

Step 2: Preparing foundational documents

In this stage, startup consultancies like us guide you through creating or refining the key documents that are essential for attracting investors. These include your business plan, financial forecasts and pitch deck. Each document must clearly communicate your startup’s vision, strategy and potential, tailored to meet investor expectations.

Typical activities:

• Creating investment materials that are compelling, well-structured and aligned with what investors look for.
• Conducting in-depth market research to strengthen your value proposition and provide evidence of market fit and demand.
• Ensuring strategic consistency across all areas of the business model
• Offering insights and recommendations to ensure your financial projections are realistic, detailed and demonstrate scalability.
• Aligning branding and messaging across all materials to ensure consistency.
• Benchmarking financial projections against industry standards to validate assumptions.

With our support, you’ll have professional, investor-ready materials that stand out from the competition. These documents not only reflect the strengths of your startup but also instil confidence in investors, increasing your chances of securing funding.

READ: Critical Fundraising Assets: The three key assets you need to win investor confidence

Step 3: Defining your funding strategy

This stage is about crafting a comprehensive roadmap to efficiently target the right investors and secure the funding your startup needs. Startup consultancies like us help you define a funding strategy tailored to your business, focusing on your unique goals, industry and growth stage. This ensures that your efforts are directed toward the most suitable investors and funding opportunities.

Typical activities

• Identifying the right type of investors for your business, such as angel investors, venture capitalists (VCs), or crowdfunding platforms.
• Determining the appropriate funding amounts to match your goals and calculating valuations that will appeal to investors while supporting your growth plans.
• Creating a clear timeline for the investment process that will help you stay organised and focused.
• Mapping investor preferences to ensure alignment with your startup’s stage, industry and goals.
• Creating tailored communication plans for different investor types (e.g., angel investors vs. VCs).

Startup consultancies like us provide a clear, actionable funding strategy that saves time and maximises your chances of success. By focusing on finding the best-fit investors and aligning your goals with their interests, we help you navigate the funding landscape with confidence and purpose.

READ: Exploring the Mind of a Founder: Why Investors Want to Understand Your Strategic Thinking

Step 4: Investor outreach and relationship building

This phase focuses on identifying and connecting with the right investors to secure funding. Startup consultancies like us provide strategic support to ensure your outreach efforts are targeted, professional and impactful. We help you not only find potential investors but also build meaningful relationships that can drive long-term success.

Typical activities:

• Connecting you with relevant investors, including angel investors, venture capitalists and other funding sources.
• Crafting personalised outreach messages that effectively communicate your startup’s unique value proposition and align with investor interests.
• Providing coaching on how to navigate initial investor meetings, including tips on presenting your pitch, answering tough questions and building rapport.
• Providing guidance on what to expect in the due diligence process, and how to conduct your own due diligence on prospective investors.
• Demonstrating how to participate in networking events to meet potential investors in informal settings.
• Preparing personalised follow-up communications after initial investor meetings to maintain engagement.

We’ll open doors to valuable networks and provide expert guidance on how to approach and engage investors effectively. By helping you establish strong relationships with potential investors, we position your startup for successful funding discussions and long-term partnerships.

EXPLORE: Investor Outreach: Seek, Meet and Convert investors

Step 5: Pitch coaching and presentation preparation

This phase is all about preparing you to deliver a compelling and professional pitch to investors. Some startup consultancies will provide coaching to ensure your pitch is clear, impactful and tailored to the audience. We help you build confidence, refine your messaging and anticipate investor questions, so you’re ready to impress during presentations.

Typical activities:

• Fine-tuning your pitch to ensure it communicates your vision, value proposition and business potential with maximum clarity and impact.
• Conducting mock pitch sessions to simulate real investor meetings, providing constructive feedback to improve your delivery and messaging.
• Preparing you for common investor questions and objections, equipping you with clear, confident responses that reinforce your credibility and business case.

By refining your presentation skills and preparing for potential challenges, we increase your chances of securing funding and building lasting investor relationships.

Our approach

While some consultancies focus on pitch coaching and presentation preparation, at Robot Mascot, our approach is slightly different. Rather than rehearsing pitches in isolation, we put your funding assets to the test in the real market, gathering direct feedback from investment analysts, funds, and family offices.

This process provides invaluable insight into why a founder might not secure investment, allowing us to refine and strengthen your business case before you engage with investors.

Typical activities:

• Testing funding assets in the market – Sending your pitch deck, business plan, and financial model to investment professionals for real-world evaluation.
• Gathering investor feedback – Collecting detailed insights on potential concerns, objections, and reasons investors may hesitate.
• Iterating assets based on real-world responses – Refining key documents to address weaknesses and strengthen your investment case.
• Preparing founders for scrutiny – Identifying the areas of your business that are most likely to come under investor scrutiny, so you can compile the necessary documentation for the data room and craft clear, compelling responses to likely questions.

By replacing theoretical pitch coaching with real investor feedback, we ensure that your funding assets are market-tested and investor-ready, giving you the best possible chance of securing investment.

READ: How To Overcome Presentation Anxiety When Pitching

Step 6: Navigating due diligence

Due diligence is a critical and often complex phase where investors thoroughly evaluate your business before committing funds. Some startup consultancies provide expert guidance to help you navigate this process with confidence. They will ensure that all necessary documents and information are well-prepared and that you are equipped to address investor concerns effectively.

Typical activities:

• Organising and presenting the required financial, legal and operational documents, including financial statements, contracts and compliance records.
• Supporting you in addressing investor concerns or requests for additional information during the due diligence phase.
• Ensuring transparency and accuracy to build trust with investors and streamline the process.Conducting a pre-due diligence audit to identify and address potential gaps before investors request information.

This will help you navigate the due diligence process smoothly, reducing stress and minimising delays. By ensuring that everything is in order and providing support throughout, you’ll maximise your chances of successfully securing investment.

READ: What is a lead Investor and how do you find one?

Step 7: Closing the deal and post-funding support

Once investors are ready to commit, the focus shifts to finalising agreements and leveraging the funds to drive growth. Some startup consultancies will assist in closing the deal on favourable terms and provide ongoing support to ensure you use the funding effectively.

Typical activities:

• Negotiating terms and conditions with investors to secure a deal that aligns with your business goals.
• Setting up structures for managing and reporting on funding usage, ensuring accountability and alignment with investor expectations.
• Offering strategic advice on deploying funds for key growth initiatives, such as scaling operations, expanding markets, or enhancing products.
• Drafting or reviewing key agreements, such as shareholder agreements or term sheets.
• Setting up financial tracking systems to monitor fund allocation and usage.

Such agencies aim to facilitate a seamless transition from securing funding to executing your growth strategy.

Many startup consultancies like us work with specialist partners, for example SeedLegals and Dragon Argent. This means Robot Mascot and our expert partners can ensure you start your post-funding phase on solid footing, maintain strong investor relationships and maximise the investment’s impact on your business.

Common challenges and how consultancies can help