The Investor Gap
Why founders misread what investors actually want — and how to fix it before the deal falls apart.
There’s a quiet moment that happens sometimes in a pitch.
The founder is sharing their vision. You know what I mean… the product, the momentum, the energy. And, the investor is nodding politely.
But behind the nodding, there’s a disconnect.
The founder thinks they’re on a roll.
The investor is thinking, This is exciting, but none of this tells me what I need to know.
I’ve seen this happen more than once. I’ve been in the room. And it’s uncomfortable. You think for the founder? No, just for everyone.
Because here’s the truth:
Most startup deals don’t fall through because the idea isn’t good. They fall through because the founder and the investor are having two different conversations.
Founders pitch vision. Investors look for structure.
Founders live in the future. That’s part of the job.
You see what could be. You see the market, the pain, the opportunity. You build fast. You adapt. You trust your gut. That’s what gets the thing off the ground.
But investors? They’re not in the same place.
They live in the details. The risks. The assumptions. The returns.
They want to believe in your future. But first, they want to understand your present.
How do you make money?
What do your margins look like?
Who’s actually using the product now?
What happens if this part doesn’t work?
These questions aren’t meant to deflate you. They’re meant to protect both of you.
The gap shows up when founders overvalue the story
I’ve seen pitch decks where 80% is future product roadmap, market size, and “what we’ll do after the raise.”
Meanwhile, there’s almost nothing about:
Unit economics
Customer retention
Current sales motion
Team strengths and gaps
How the funds will actually be used
Founders assume the story will carry it. But story is the wrapper. Investors want to see what’s inside the box.
The pitch isn’t just to impress. It’s to build trust.
Investors don’t want hype, what they want is honesty
One of the best founder decks I’ve ever seen didn’t gloss over the risks. It named them.
“Our churn is higher than we want. Here’s why we think it’s happening, and what we’re doing about it.”
“We’re still figuring out how to sell to this segment. Here’s what we’re testing.”
“We need help thinking through this pricing strategy. It’s early.”
That kind of openness builds credibility. It shows that you’re not just selling, but you’re self-aware.
And ironically, that makes the upside feel more real.
The mismatch is costly
Founders often walk out of a “great” pitch confused when the follow-up is a polite no.
It usually comes down to one thing:
The founder thought they were selling potential. The investor was looking for proof.
This isn’t about losing your vision. It’s about knowing your audience. If you're speaking future and they’re listening for now, no one's going to feel good about the deal.
So how do you close the gap?
Here is what I suggest:
1. Show the engine, not just the destination.
Give investors the working parts. The revenue mechanics. The customer data. The actual traction.
2. Make your ask specific.
What exactly is the money for? What will it unlock? What would you not be able to do without it?
3. Know your risks and say them out loud.
You’re not hiding anything by avoiding the hard parts. You’re showing you don’t understand them.
4. Be clear on how they win.
Not just “we’ll grow and maybe exit.” Explain how this deal benefits them. What makes it fair? What makes it worth the risk?
It’s not about being polished. It’s about being prepared.
Founders don’t need to become finance experts or risk-averse planners. But they do need to understand how the people across the table think.
Because when an investor says no, it’s not always because they didn’t believe in your idea.
Sometimes, they just didn’t hear what they needed to say yes.