How to Pitch to Sceptical Investors

Securing your first investment is often the biggest challenge for any startup. As an early-stage founder, you might be in the process of building a product, testing a market, or developing a prototype. Whether you’ve launched yet or not, one thing is clear: investors will likely be skeptical. And it’s not just because of you. 

The war continues to take a heavy toll, raising the risks — and the stakes — for everyone. Launching new products and securing investments during wartime is an enormous challenge, yet Ukraine continues to demonstrate resilience, with growth in its defense startup ecosystem, for instance. IT Arena even features a dedicated defense stage.

Still, investors aren’t just evaluating a fresh idea. They’re assessing the potential for growth, the strength of your team, and your ability to navigate uncertainty.

Pitching to a skeptical investor can feel daunting, but it’s far from impossible. In fact, with the right approach, you can turn that skepticism into trust and, ultimately, into funding. Startup Competition, as one of the cornerstones of the IT Arena, has proved that even in incredibly difficult circumstances you can convince investors to believe in you. 

Here is how you can do it.

Understand the investor’s mindset

Before you even begin your pitch, it’s essential to understand where the skepticism is coming from. As an early-stage startup, you’re likely still in the pre-revenue or prototype phase, which means your business is high-risk. Investors are naturally cautious with early-stage companies because of certain reasons. First, it is a market risk: your product may not have been tested or proven in the market. Another possible reason is team uncertainty. You might not have a track record that reassures investors you can execute on your idea. Last but not least — unproven business model. Without customer validation or revenue, your model could seem speculative.

Knowing that investors are weighing these risks can help you prepare to address their concerns directly and strategically. Be ready to get the tough questions and answer them by including all you think investors might be worried about.

Focus on the problem and the solution

In the early stages, it’s not just about having an innovative idea. It’s about demonstrating a clear understanding of the problem you’re tackling and why your solution matters. But what is super important here — make sure that the problem you’re trying to solve actually exists. Not just in your head. You can easily prove that there is something people struggle with and they realize it. And as a result, potential customers are likely to pay for it. This part of your pitch also needs to resonate with the investor’s own knowledge of the market and customer pain points.

To get this right, be clear and concise. Don’t overcomplicate things — focus on the problem you’re solving and why it’s irresistible. Explain why your solution is unique. Whether it’s a new technology or a better user experience, explain why your approach is different from existing solutions.

Validate your idea with early data

At the seed stage, investors are often more focused on potential than on proven success. But that doesn’t mean they want to hear just about your vision — they want to know you’ve validated your idea in some way.

This is where early-stage traction comes into play. Traction doesn’t always mean revenue or hundreds of users. It can be customer interviews or surveys, beta testing or prototype results, early sign-ups or waitlists.

Having real-world data, even if it’s limited, demonstrates to investors that your idea is worth considering. It shifts the conversation to a more evidence-based discussion about the viability of your business.

Show the strength and commitment of your team

To build investor confidence in your team, firstly, you need to highlight relevant experience. Even if you haven’t worked on a startup before, point to your skills or any experience that’s relevant to the problem you’re solving.

Another important thing is to share your commitment. Early-stage startups require a high level of dedication. Investors want to know you’re willing to go all-in, even if things get tough.

Address gaps openly. If you’re missing expertise in areas like marketing or development, don’t shy away from discussing it. You can even mention plans to bring in advisors or hire key team members to fill those gaps.

Investors may be skeptical about your ability to execute, but by showing that your team has the right mix of passion, commitment, and complementary skills, you can alleviate some of their doubts.

Be ready to present your vision and roadmap

Still figuring things out is completely normal for an early-stage startup. What matters is showing that you have a clear vision for the future and a roadmap for how you’ll get there. Investors want to see that you’re not just winging it — they want to know you have a structured plan for the next 12 to 18 months.

Your roadmap should cover key development stages. What’s the next critical step for your business? Whether it’s product development, market testing, or launching your MVP, explain what you plan to achieve and by when. 

You also need to be clear about how much funding you need and what it will be used for. Show how their investment will help you reach your next milestones and bring you closer to product-market fit. 

The roadmap doesn’t need to be set in stone, but it needs to show that you’re thinking strategically and have a path forward. Investors will be more inclined to back you if they can see how their investment fits into your journey.

What is also crucial here is to embrace transparency and honesty. Everyone, not only skeptical investors, will appreciate it. Don’t be afraid to acknowledge challenges you face as an early-stage startup. Tell them honestly what you are good at and what your weaknesses are. Investors are looking for a return, but they also want to feel that they’re part of something exclusive and valuable, so your pitch should align with these desires.

As an early-stage founder, pitching to skeptical investors is a challenge, but it’s also an opportunity. By showing your passion, validating your idea, building a solid plan, and demonstrating that you have the drive to execute, you can overcome skepticism and gain the trust needed to secure funding. 

If you’re reading this, chances are you’re a startup founder — or aspiring to become one — looking for the right platform to connect with investors and turn your idea into reality. If that sounds like you, welcome to the IT Arena Startup Competition. We’re on the lookout for bold innovations and tech solutions that will shape Ukraine’s future and make a global impact.