When an investor is thinking about betting on an up-and-coming software innovator, what do they look for? We asked, and they answered.
At Seattle Tech Week, we co-hosted a panel of investors who focused on different stages of a company’s lifecycle, followed by a mixer at Fenwick’s speakeasy lounge to encourage further discussion between the area’s top talent from the technology and life sciences ecosystem.
Moderated by Canvas CEO Sarah Bird, we heard insights from the general partners of a handful of visionary software VCs—including Seksom Suriyapa from Upfront Ventures, Andrew Peterson from Aviso Ventures, and Kellan Carter from FUSE. Here are their words of wisdom for founders:
You are part of the package. Investors aren’t just investing in the next big product—they’re investing in passionate entrepreneurs who have the gumption and the know-how to bring that vision to life. When you’re pitching, you’re not just selling an idea—you’re selling your knowledge, your team, and yourself – don't forget to sell the sizzle with the steak!
Get to know your local investment community. Share that hometown pride! When you’re an entrepreneur in the early stages, fostering connections with local, accessible investors offers you so much value. Your first investors can often be your biggest cheerleaders, and even if those connections don’t become your investors, they can help open the door to new opportunities.
Find the right fit. Think of finding investors like match making. It's not about casting the widest net, it’s about finding the perfect few who resonate with your long-term goals. Look for investors whose knowledge, networks, and savvy can push your business to new heights. Sometimes this means you need to leave the local market to find the right fit.
Be confident. Passion and confidence about your company are critical for any founder. You can be humble about yourself, but should avoid being humble about the company.
Be on the same page about valuation. Set a fundraising plan based on real cash needs for the business, not dilution targets, and understand that investors – in particular at the earlier stage – are solving for an ownership percentage. How much money an investor thinks your business is worth usually doesn't match up with the amount of money your business needs to run smoothly. This means you've got to find that sweet spot between what your company needs and what a potential investor expects.
Take rejections with a spoonful of sugar. If an investor says “no,” ask why, and listen. It might taste bitter now, but honest feedback gives entrepreneurs the opportunity to learn and grow. And remember, a “no” doesn’t mean “never.” Don’t discount an investor if they passed the first time around—instead, take their advice to heart and use it to get that “yes” down the line.
