Understanding your investors is vital to presenting your pitch successfully. Each investor type expects different information and follows specific criteria when evaluating investment opportunities while showing diverse involvement levels.
A well-prepared startup should tailor its pitch deck to align with the particular interests of different business investors, increasing the likelihood of securing funding. Different business investors have unique expectations, investment criteria, and levels of involvement.
This article outlines the key types of different business investors and what startups should consider when pitching to them, ensuring a compelling and well-targeted presentation.
1. Angel investors
Angel investors, also known as idea investors, are high-net-worth individuals who provide capital to early-stage startups in exchange for equity. Unlike institutional investors, they often invest personal funds and take a hands-on approach by offering mentorship, industry connections, and strategic guidance.
Angel investors typically invest between $25,000 and $500,000 per startup, focusing on pre-seed and seed-stage companies that are still validating their business model and gaining early traction.
Since early-stage startups often lack significant revenue, these investors rely on specific criteria to evaluate potential investments. To secure funding from an idea investor, startups must demonstrate the following:
- A compelling and innovative business idea
- A passionate and capable founding team
- A scalable business model
- Early traction or validation.
- A clear funding ask and usage planning.
Beyond meeting these criteria, startups must also engage angel investors effectively by building relationships and showcasing their vision . To effectively engage angel investors, startups should:
- Leverage personal networks: Many angel investments happen through warm introductions from industry connections, startup accelerators, or networking events.
- Join angel networks: Platforms like AngelList, Tech Coast Angels, and Golden Seeds connect startups with active angel investors.
- Tell a compelling story: A well-crafted narrative highlighting the startup's mission and potential impact is essential.
- Demonstrate coachability: Angel investors often act as mentors, so they look for founders who are receptive to advice and adaptable to market feedback.
2. Venture capitalists (VCs)
Venture capital firms manage pooled funds from institutional and individual investors for startups in exchange for equity. They provide capital, mentorship, and strategic guidance. Depending on their investment strategy and risk appetite, they can be categorized into different types:
1. Early-stage VCs - Invest in seed and Series A startups.
2. Growth-stage VCs - Focus on scaling companies in Series B and beyond.
3. Sector-specific VCs - Specialize in fintech, biotech, or SaaS.
Venture capitalists evaluate startups based on key metrics and investment potential. Whether investing in early-stage, growth-stage, or sector-specific startups, VCs rely on measurable indicators to assess viability and scalability. To attract their attention, startups must focus on the right factors and craft a compelling pitch deck accordingly. These key metrics are:
- Large and growing market- A startup should target a Total Addressable Market (TAM) of $1B+, providing enough room for expansion
- Revenue growth and traction -VCs look for consistent month-over-month growth, active users, and increasing revenue.
- Competitive advantage - Proprietary technology, strong branding, or network effects that create a defensible market position
- Strong founding team -A track record of execution, industry expertise, and adaptability to market changes.
- Clear exit potential - VCs need a high return on investment (ROI), so startups should outline potential exit strategies (acquisition, IPO, or strategic partnerships).
These key metrics provide VCs with the necessary insights into a startup’s viability and scalability. However, a well-structured pitch deck should highlight the startup’s strengths, ensuring that VCs quickly understand its potential for growth and profitability. To increase the chances of securing investment, startups should focus on the following elements when preparing their pitch:
- Demonstrate scalability: Show how your business can grow rapidly with additional funding.
- Present a compelling business model: Clearly outline how your company makes money. Investors need to see a sustainable and scalable financial model.
- Showcase a strong team: VCs invest in people as much as ideas. Highlight the experience, skills, and past successes of your founding team.
- Lead with traction: Start with your most substantial metrics, such as revenue growth, customer acquisition, or line the investment ask and usage Specify how much funding you’re raising, how it will be allocated, and what key milestones it will help achieve.
Below are examples of popular VCs and companies they funded.
Sequoia Capital –Funded Google, Airbnb, Stripe, among others here.
Andreessen Horowitz –. Early investors in Facebook, Slack, and Coinbase, highlighted here.
3. Private equity investors
Private equity (PE) and venture capital (VC) both invest in businesses, but they differ significantly in investment approach, risk tolerance, and business stage:
Venture capitalists (VCs) invest in early-stage, high-growth startups, taking minority stakes with the goal of high returns from IPOs or acquisitions.
Private equity (PE) firms invest in mature, revenue-generating companies, often acquiring majority stakes to improve operations and drive profitability before selling or taking the company public.
PE firms seek established businesses with:
1. Stable cash flows and proven profitability.
2. Scalable operations that can benefit from efficiency improvements.
3. Potential for restructuring or market expansion to increase valuation.
4. Strong management teams or opportunities to introduce new leadership for growth.
Unlike venture capitalists, who often invest in early-stage startups with high growth potential, private equity firms seek established businesses with strong financial fundamentals and a clear path to value creation.
Private equity investors expect:
- Strong financial performance: Businesses should have positive EBITDA, consistent revenue, and solid margins.
- Defined growth trajectory: PE firms focus on scaling operations, cutting costs, and increasing efficiency to maximize value.
- Clear exit strategy: To ensure returns, Investments are structured for a sale, merger, or IPO within 5–7 years.
Private equity investors have distinct expectations compared to venture capitalists. Companies must emphasize financial stability, scalability, and value creation strategies that align with PE firms' investment goals to tailor a pitch deck for private equity investors.
- Emphasize financial performance: Include detailed revenue models, cash flow statements, and profitability trends.
- Show operational improvements: Highlight efficiency gains, cost-cutting opportunities, and scalability.
- Present a clear exit strategy: Outline whether the target is an IPO, acquisition, or strategic sale and the expected timeline.
- Demonstrate management expertise: Show that the leadership team can execute growth plans.
- Highlight competitive positioning: PE firms want businesses with a strong market presence and differentiation.
Several popular private equity firms have been in the first line regarding funding companies.
Examples include:
Blackstone – Invested in Hilton Hotels, as highlighted here.
KKR – Acquired and expanded GoDaddy, as seen here.
4. Corporate investors
Corporate or strategic investors are large companies investing in startups aligned with their business goals. Unlike venture capitalists, their primary motivation isn’t just financial returns but also gaining access to innovation, new markets, and strategic partnerships. Corporations invest in startups to achieve the following objectives;
- Enhance innovation
- Expand market reach
- Diversify revenue streams
- Secure acquisition opportunities
Corporations invest in startups for financial returns and to drive strategic growth through innovation, market expansion, and diversification. To attract corporate investment, startups must align their pitch deck with these objectives by demonstrating how their business complements the corporate investor’s core strategy through:
- Demonstrate industry alignment - Show how the startup complements the corporate investor’s core business and long-term goals.
- Highlight synergy opportunities -Explain how the startup’s product or technology can integrate with the corporate investor’s existing infrastructure.
- Showcase innovation and differentiation - Corporations seek cutting-edge solutions that give them a competitive advantage.
- Offer partnership potential - A startup that can provide supply chain efficiencies, distribution partnerships, or co-branding opportunities will stand out.
Corporate investment in startups offers potential benefits beyond capital, making it an attractive funding option for entrepreneurs looking for more than just financial backing. Unlike traditional venture capital or private equity, corporate investors provide strategic advantages that can accelerate a startup’s growth and market positioning.
Startups backed by corporate investors can gain:
- Access to large distribution networks and customers.
- Brand credibility and industry influence.
- Strategic guidance and operational support.
Many successful startups have benefited from corporate investment. Examples of popular corporate investors and the companies they have funded include;
As seen here, Google Ventures (GV) - Invested in Uber and Medium to support innovation in AI and digital platforms.
Intel Capital - Funded Red Hat and Cloudera to strengthen its position in cloud computing, as seen here.
5. Family offices
Family offices are privately owned investment firms that manage the wealth of high-net-worth families. Family offices invest their capital, allowing them greater flexibility in decision-making.
There are two main types of family offices:
1. Single-family offices (SFOs): Manage the wealth of a single affluent family.
2. Multi-family offices (MFOs): Handle investments for multiple wealthy families, pooling resources to diversify their portfolios.
Family offices, whether single-family (SFOs) or multi-family (MFOs), manage substantial wealth with a strategic, long-term investment approach. Unlike traditional investors, they prioritize sustainable growth and wealth preservation. With this long-term horizon, family offices typically focus on:
- Stable, revenue-generating businesses rather than high-risk startups.
- Impact-driven and legacy investments that align with family values.
- Diversified portfolios include real estate, private equity, venture capital, and company direct investments.
Their risk appetite varies. Some invest conservatively in established businesses, while others support early-stage startups with high growth potential. The level of risk a corporation is willing to take often depends on its industry, strategic goals, and market position. Several key factors, therefore, influence their decision-making process when evaluating potential investments:
- Alignment with family values - Many prioritize sustainability, philanthropy, and social impact.
- Financial security and long-term returns - Unlike VCs seeking quick exits, family offices focus on steady wealth preservation and growth.
- Direct involvement opportunities - They may take board seats or provide strategic mentorship.
Family offices often take a long-term approach, focusing on stability, risk management, and meaningful impact. To attract investment from family offices, startups must tailor their pitch deck to align with these priorities.
- Emphasize stability and risk management - Show predictable revenue streams and financial resilience.
- Highlight long-term impact- Make this clear if your startup is aligned with sustainability, social responsibility, or innovation.
- Build a relationship-first approach -Unlike institutional investors, family offices value trust, legacy-building, and partnerships.
Examples of such family offices and the companies they invest in include;
Pritzker Group – Invested in Tesla, as seen here.
As seen here, Rockefeller Capital Management Supports sustainable businesses and clean energy startups.
6. Government grants and funds
Governments worldwide provide non-dilutive funding through grants, subsidies, and low-interest loans to support startups, research, and economic development. Unlike private business investors, government funding does not require equity in return, making it an attractive option for founders. Startups can access various types of grants and funds, including:
- Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Grants (USA) - Federal funding for R&D startups.
- Horizon Europe (EU) -Grants for tech, sustainability, and healthcare innovations.
- UK Innovate Grants (UK) - Supports early-stage and deep-tech businesses.
- Startup India Seed Fund (India) - Funds emerging startups in tech and manufacturing.
- Canada’s Industrial Research Assistance Program (IRAP) - Provides capital for innovation-driven businesses.
To secure government funding, Startups must structure their pitch deck to align with government priorities and demonstrate how their business contributes to national or regional development goals.
This means highlighting innovation and market potential and emphasizing societal impact, job creation, and technological advancement. To increase their chances of approval, they should:
- Emphasize innovation and public benefit- Governments prioritize startups that drive economic growth, job creation, and technological advancements.
- Demonstrate feasibility - Unlike private business investors, government agencies need clear research, technical validation, and execution plans.
- Show regulatory and compliance alignment - Startups must adhere to legal, environmental, and safety guidelines.
- Detail funding utilization - Specify how the grant will be used for R&D, hiring, equipment, or scaling operations.
Government grants may differ in expectations compared to private investors, requiring startups to align their pitch accordingly. While private investors focus on profitability and market dominance, government agencies prioritize public benefit, feasibility, and compliance.
The table below illustrates these key differences, helping startups tailor their approach for maximum funding success.
Aspect | Government Grants & Funds | Private Business Investors |
Equity Requirement | No equity taken | Require ownership stake |
Primary Goal | Economic development & innovation | Profit and scalability |
Decision Process | Bureaucratic & compliance-driven | Market-driven & flexible |
Involvement | Minimal post-funding engagement | Hands-on mentorship & scaling support |
SBIR/STTR (USA), here, is an example of a government grant that Funded Moderna, leading to mRNA vaccine breakthroughs.
7. Crowdfunding investors
Startups now benefit from crowdfunding as a modern financial option because it permits them to secure capital through many individual support investors. Crowdfunding attracts daily people and regular consumers as investors because they want to fund innovative concepts. This model has gained traction due to:
- Lower barriers to entry -Founders can access funding without needing connections to VCs or angel investors.
- Community-driven investments -Startups can validate their product with real customers before scaling.
- Diverse funding structures- Entrepreneurs can choose from different types of crowdfunding based on their business model.
Crowdfunding provides a unique alternative to traditional investment by lowering entry barriers and enabling real customer validation. There are three main types of crowdfunding, which include:
- Equity-based - Investors get shares in the company.
- Reward-based - Supporters receive early access or perks.
- Debt crowdfunding (P2P lending) -investors lending money to startups, expecting repayment with interest (e.g., Funding Circle, Prosper).
Unlike traditional investors for a business, crowdfunding backers need simple, engaging storytelling and strong visuals to capture their interest quickly. A successful crowdfunding pitch deck should:
- Tell a compelling story - Emphasize the problem, solution, and emotional connection with potential backers.
- Use clear, engaging visuals - Crowdfunding platforms are fast-paced, so infographics, videos, and concise slides make a more substantial impact.
- Show social proof and demand -Highlight pre-orders, testimonials, or partnerships to build credibility.
- Explain funding goals and use of funds - Be transparent about how the money will be spent to reassure investors.
Startups must focus on clear communication and community engagement to secure funding successfully. Unlike traditional investors, crowdfunding backers are drawn to compelling storytelling, strong visuals, and social proof to build confidence in a project. They should;
- Leverage transparency. Regular updates and precise financial projections help build trust.
- Encourage community interaction. Thanks to Q&As, social media outreach, and email communication, your backers will maintain an active interest in your success.
- Offer early incentives. Providing exclusive perks, discounts, or equity bonuses motivates early adopters.
By leveraging transparency, encouraging community interaction, and offering early incentives, startups can sustain interest and momentum. Below are two crowdfunding success stories demonstrating how these strategies have led to successful funding campaigns.
Oculus VR (Kickstarter) – Raised $2.4M before being acquired by Facebook for $2B, as seen here.
Pebble Smartwatch (Kickstarter) – Raised over $20M and pioneered early smartwatch adoption, as seen here.
8. Impact investors and social venture funds
Impact investing focuses on generating both financial returns and measurable social or environmental benefits. Unlike traditional investors who prioritize profit maximization, impact investors evaluate companies based on their commitment to Environmental, Social, and Governance (ESG) factors.
Key objectives include:
- Supporting sustainable and ethical businesses.
- Addressing global challenges like climate change, healthcare, and education.
- Balancing profitability with positive societal impact.
Impact investing prioritizes financial returns and measurable social or environmental benefits, setting it apart from traditional profit-driven investment approaches. Impact investors seek startups aligning with Environmental, Social, and Governance (ESG) principles, ensuring businesses contribute to sustainable and ethical progress.
To secure impact investment, startups must demonstrate their commitment to ESG metrics, which evaluate:
- Environmental – Carbon footprint, renewable energy usage, waste reduction.
- Social – Fair labor practices, diversity and inclusion, community impact.
- Governance – Ethical leadership, transparency, and corporate accountability.
Investors looking to support mission-driven companies want strong financial sustainability and scalable social or environmental benefits. To effectively highlight mission-driven goals in a pitch deck, startups should focus on the following key elements:
- Clearly define impact metrics – Show measurable goals like “reducing carbon emissions by 50% in 5 years”.
- Tell a mission-driven story – Explain why your company exists beyond financial returns.
- Demonstrate scalability – Investors want to see how impact grows alongside revenue.
- Align with investor values – Research potential investors to ensure mission alignment.
While mission-driven companies prioritize positive social or environmental outcomes, they must also demonstrate financial viability. Investors need reassurance that a startup can sustain itself while achieving its mission through:
- Hybrid business models – Some impact-driven companies reinvest profits into social initiatives (e.g., TOMS Shoes’ buy-one-give-one model).
- Sustainable revenue streams – Showing a clear path to financial sustainability reassures investors.
- Impact-first but scalable – Social ventures must prove they can expand without compromising their mission.
The following are examples of impact investors and funded companies.
As seen here, Acumen – Funded d.light provides solar energy to off-grid communities.
Omidyar Network – Invested in Khan Academy, supporting free global education, as seen here.
Conclusion
Business pitches targeted to investors demand specific preparation because different investor groups possess distinct funding requirements, risk acceptances, and funding preferences. The compatibility between your pitch deck and investor expectations will significantly bolster your opportunity to win funding when addressing VCs, private equity firms, corporate investors, and impact investors.
Thorough research ensures your presentation highlights growth metrics, financials, and strategic value. To create a compelling and investor-ready pitch, outsource pitch deck services for any audience at Propitchdeckservices.com. Expert-crafted decks help startups present their vision effectively and maximize fundraising success.