In raising funding, startups should avoid these statements to investors.

“We have no competition.”

If there’s no competition, then there is no market.

Instead, the founder should talk about how the startup solves the problem in a new and unique way.  

This is the value proposition of the business.

“You’ll need to sign my NDA before I can tell you about my business.”

The investor will interpret this to mean there’s no protection on the business, such as intellectual property.

Instead, the founder should limit the discussion to the benefits their technology provides and not go into how it works.

“I’ve included my sweat equity on the cap table.”

The investor will only recognize equity that is bought with dollars.

The founder should consider sweat equity as table stakes that all startups must bring to the fundraise.

“We only need 1% of this billion-dollar market to be successful.”

While this statement may sound compelling, the investor interprets this statement as lacking a go-to-market strategy.

The founder should focus on their initial traction with customers by outlining the first twenty customers they will pursue.

This shows a focused approach to entering the market.

Avoid these statements in your pitch.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
________________________________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/
For Feedback please contact info@tencapital.group
Please follow, share, and leave a review.
Music courtesy of Bensound.

Copyright (c) 2025, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.