The journey from idea to building a startup to receiving investment is rarely straightforward. For every startup that secures funding, many more struggle to break through. We’ve worked with thousands of founders and their investors, and we’ve seen patterns emerge among companies that attract capital. This post explores what sets fundable startups apart—and offers practical tips for founders aiming to succeed. 

What Do Funded Startups Have in Common? 

1. The Right Team: The Make-or-Break factor
   Investors bet on people more than technology or products. The most successful startups are built by teams that combine vision, execution, and technical prowess. Complementary skills and shared commitment:  think of the classic trio: the visionary who sees the future, the hustler who gets things done, and the hacker who builds the solution.  Diversity of skills and perspectives is critical, but so is a shared commitment to the mission.  Relentless execution:  investors back teams who can take messy, ambiguous situations and ship product, close customers, and iterate quickly.  Curiosity, Coachability:  Successful founders listen, absorb, and make their own informed calls (using the 80/20 rule).  Investors look for teams that are resilient, adaptable, and able to learn from setbacks. 
2. Solving a Real Problem with an Original Product
   It’s not enough to have a clever idea, and a “nice to have” solution is almost never fundable —the product must address a genuine pain point. The best startups create something original that delivers measurable business outcomes. Investors want to see that your solution isn’t just “nice to have,” but essential for your target customers. Show iterative learning that new versions are based on customer feedback.  Demonstrate that your product works, that it’s differentiated from competitors, and that it’s something people are willing to pay for. Develop a moat - it could be IP, but it could also be speed of execution, network effects or overcoming regulatory hurdles.  
3. Big Market, Urgent Need, Clear Value Proposition, and Product-Market Fit
   A great product in a tiny market won’t attract venture capital. Fundable startups operate in large, growing markets or those that are shifting in your favor with room for expansion.  Prospective customers must want this now?  There is customer pull not just founder push.   They can clearly articulate their value proposition—why customers choose them over alternatives—and show evidence of product-market fit. This means not just early adopters, but repeatable sales, strong retention, and a clear path to scaling. 
4. Focused Execution with a Big Vision
   Successful founders balance focus and vision. They start by solving a specific problem for a well-defined audience, but they also have a vision for how their solution can expand into adjacent markets or applications. Investors want to see that you can execute today while keeping an eye on tomorrow’s opportunities.   
5. Business Model, Go-to-Market Strategy and Traction
   How will you reach your customers? What does it cost to acquire them? Unit economics story:  how do they improve with scale?  Scalable distribution:  what's your engine to reach customers you don't know?  Capital efficiency:  can you stretch dollars and show progress before needing funding again?  Fundable startups have a well-thought-out go-to-market strategy, realistic customer acquisition costs, efficiency in operations and evidence of traction—whether that’s revenue, user growth, partnerships, or other key metrics. Remember: traction is the best proof that your business works.   Pilots, early users, paid contracts carry more weight than a good presentation.  And monetization actually matters.
6. Practitioner Founders
   Investors love founders who have lived the problem they’re solving. If you’re building a product for an industry you know intimately, you bring credibility and insight that outsiders can’t match. Practitioner founders can empathize with customers, anticipate challenges, and build solutions that truly resonate. 

Tips from the Trenches: How to Stand Out in the Fundraising Process 

1. Preparation is Everything
   Before you approach investors, get your house in order. This means a clean cap table and financials, clear IP ownership, robust documentation, an available option pool, and a compelling pitch deck. Anticipate the questions investors will ask and have data to back up your claims. A well-prepared founder inspires confidence and keeps the process moving.  
2. Build Relationships Early
   Don’t wait until you need money to start talking to investors. Build relationships months in advance. Seek feedback, ask for advice, and keep potential investors updated on your progress. Warm introductions and ongoing engagement make it much easier to close a round when the time comes.
3. Storytelling;  Clarity and Conviction
   Start with a simple narrative:  why you, why now, why this market?  Cut through the noise of hundreds of pitches with clarity.  Have vision and a roadmap:  Big vision gets attention, but concrete milestones over the next 12-18 months can help you close a deal.  Have a de-risking frame:  Great founders anticipate the top investor objections and address them head on.  No startup is perfect. Investors appreciate honesty about what’s working and what isn’t. Be upfront about risks, challenges, and what you’re doing to address them. This builds trust and demonstrates that you’re a thoughtful, realistic leader. 
4. Leverage Advisors and Networks
   Surround yourself with experienced advisors who can open doors, provide credibility, and help you avoid common pitfalls. Tap into your network for introductions, references, and strategic guidance. Investors often look to see who’s backing you beyond your core team.
5. Stay Focused, But Be Ready to Pivot
   The best founders are laser-focused on their goals, but not wedded to a single approach. Listen to feedback from customers, partners and investors, and be willing to pivot if the data points you in a new direction. Agility is a hallmark of successful startups.
6. Get Momentum and Keep the Process Moving
    Line up meetings, add potential co-investors and competitive leads, build FOMO.   Look for the right investors for your business, at your stage and your culture.  Fit matters more than valuation as you can retain alignment longer and unlock later rounds.  Set clear timelines, communicate expectations, and keep momentum high. Don’t let negotiations drag on—time kills deals. Be responsive, organized, and decisive.  Like a sales funnel:  leads, pipeline, conversion.  And know that fundraising can be a full-time job.
7. Know Your Numbers
   Be ready to dive deep into your metrics: customer acquisition cost, unit economics, lifetime value, burn rate, runway, and more. Investors want to see that you understand your business inside and out. If you don’t know your numbers, it’s a red flag.

Our Take

Securing funding isn’t about luck—it’s about preparation, execution, and the ability to tell a compelling story backed by real results. The startups that get funded are those that combine a strong team, a real solution to a big and urgent problem that customers want and will pay for, the discipline to execute fast and learn faster and the traction to prove it. At Baker Botts, we help founders navigate the fundraising process, avoid common pitfalls, and position their companies for long-term success. If you’re ready to take your startup to the next level, reach out to our team for guidance tailored to your journey.