Fundraising is a defining moment for any startup—and in the current UK landscape, it’s never been more important to get it right.
In 2024, the UK remained Europe’s top destination for VC funding, raising over £21.3 billion, yet the number of deals dropped by 24% (Beauhurst, 2024). The funding pool is there—but it’s more competitive than ever. So, how do you stand out in a market that’s both booming and bottlenecked?
At The Small Consultancy, we work closely with startups, scaleups, and investor-backed businesses to prepare them for this exact moment. Whether you’re raising seed or Series B, here are five grounded, actionable tips to help you stand out and secure investment.
1. Tell a Story That Resonates
Investors don’t just back ideas—they back narratives. In a market flooded with pitches, your story needs to cut through the noise. Alejandro Cremades, author of The Art of Startup Fundraising, emphasizes:
“The best entrepreneurs are not the best visionaries. The greatest entrepreneurs are incredible salespeople. They know how to tell an amazing story that will convince talent and investors to join in on the journey.”
Why now? Why you? What’s the market shift you’re capitalising on? These are the questions investors want answered. Your pitch should weave together your mission, market opportunity, and the problem you’re solving. Authenticity and clarity are paramount.
2. Show Real Market Traction
Before seeking funding, ensure you have tangible evidence of market demand. This could be in the form of user growth, revenue, or partnerships. 61% of UK VCs now say they require revenue traction before investing, even at early stages (Atomico’s State of European Tech, 2024). As noted by Konvoy Ventures:
“Founders should look for funding when they know the market opportunity and target customers, and when they have a product that meets those needs and is being adopted quickly.”
Don’t wait for perfect numbers. Instead, share:
- User growth or waiting lists
- Retention or engagement metrics
- Strategic partnerships
- Positive unit economics (even on a small scale)
Investors seek validation that your product or service addresses a genuine need and has growth potential. You’re building investor confidence. Prove there’s real appetite for what you’re offering.
3. Understand the VC Perspective
Venture capitalists operate on a model where a few investments yield significant returns. “The venture capital business is a 100% game of outliers—it’s extreme exceptions”, Marc Andreessen highlights.
Position your startup as a potential outlier by showcasing unique value propositions, scalable models, and a clear path to significant market share.
4. Be Strategic About Investor Selection
Not all capital is equal. The best founders are selective. Seek investors who offer more than just funding—those who provide strategic guidance, industry connections, and align with your company’s values. A harmonious investor-founder relationship can be the difference between success and stagnation.
5. Prepare for Rigorous Due Diligence
Investors will scrutinize every aspect of your business. Ensure your financials are transparent, your legal structures are sound, and your business model is robust. According to HSBC Innovation Banking, British tech startups have faced tougher investment terms, especially during later-stage funding rounds, emphasizing the importance of being well-prepared.
Engaging experienced legal counsel and financial advisors can streamline this process and instil confidence in potential investors.
Get ahead by ensuring:
- Your finances are clean and well-documented
- Cap tables are up to date and logical
- Employment contracts, IP rights and supplier agreements are watertight
- Your growth plans are realistic (and backed by data)
Don’t let avoidable errors become dealbreakers.
How The Small Consultancy Can Elevate Your Fundraising Journey
“Fundraising is more than just securing capital; it’s about building relationships and aligning visions. At The Small Consultancy, we empower startups to present their best selves to the right investors”, Caroline Hall, founder of The Small Consultancy.
We work with VC and PE-backed businesses, scaleups, and ambitious founders to help them grow smart and hire smarter. If you’re planning a fundraise—or hiring post-raise—we can help you:
- Shape the team you need to scale
- Refine your employer brand and recruitment marketing to attract top talent
- Build robust hiring strategies and internal capability
- Align hiring with your investment thesis and growth trajectory
- Tell your story in a way that wins investors, hires, and customers
Our sweet spot is the intersection of people and performance. Whether you’re pre-seed or post-Series C, we bring the expertise that makes scaling simpler.
Get in touch today to explore how we can support your next phase of growth.