• Diversity and Inclusion: Increasingly, investors are looking for diversity within teams and leadership. Companies led by diverse founding teams may be seen as more innovative, reflecting broader representation and social responsibility. 

3. Stage of Development and Financial Performance 

• Revenue and Traction: Startups that are beyond the idea stage, with initial customers, revenue, or a growing user base, are generally more attractive to investors. Seed-stage funding typically looks for strong early signals, while later-stage investments require more established business models.

• Scalability and Growth Metrics: Investors are keen to understand how quickly a business can scale and what metrics (e.g., monthly recurring revenue, customer acquisition cost, lifetime value) demonstrate that growth is achievable. 

4. Access to Global Markets and Technology 

• Global Reach and Expansion Plans: Businesses with the potential to expand beyond the UK market into global markets are attractive to investors, particularly if they are in sectors that benefit from internationalization.

• Technological Advantage: In the current environment, founders leveraging cutting-edge technologies (e.g. AI, blockchain, green tech) might be able to attract more investment, as these sectors are often seen as high-growth areas. 

5. Timing and Market Sentiment 

• Trends and Timing: Investors are often looking for businesses that align with emerging trends, be it in fintech, healthtech, green energy, AI, or other sectors. Founders who can tap into these trends and demonstrate that they are launching at the right time can stand out.

• Investor Sentiment: The broader sentiment of the venture capital and angel investor community also matters. In some years, investors might be more risk-averse, while in others, they may be more willing to back high-risk ventures. Being aware of the current mood in the investment ecosystem is essential. 

6. Exit Strategy 

• Clear Exit Path: Founders who can articulate a clear exit strategy, typically through an acquisition pathway, will engage with more investors. Investors are generally looking for opportunities that have a clear path to liquidity and return on their investment. 

Successful founders in the UK need to demonstrate a mix of strategic business insights, strong leadership, adaptability to economic and regulatory trends, and the ability to effectively communicate their vision. Understanding investor motivations, market trends, and building the right relationships will be essential to navigating the investment landscape in 2025. 

You can read Ian’s reflections on the factors related to the Founder in the previous blog here.

GM Business Growth Hub support businesses at all stages of the business cycle, from getting started to equity raising and beyond. You can contact us here (link to ‘contact us’ on the page or the page on our site).