Investors typically evaluate the problem you’re solving, your business model, traction, market size, competitive advantage, and the strength of your team.

There’s no fixed rule, but most early-stage rounds involve 10–25% equity. The amount depends on your valuation, the size of the round, and negotiation with investors.

Prepare a clear pitch deck, financial projections (3–5 years), a cap table, profit & loss statements, and evidence of traction (sales, users, partnerships, etc.).

Not always. Early-stage investors may back strong teams with prototypes or MVPs (minimum Viable Product) if you can prove demand and scalability. Later-stage investors expect revenue and growth data.

Look for investors who understand your industry, have relevant networks, and ideally have invested in similar ventures. Warm introductions (via networks, accelerators, or mentors) usually work better than cold outreach.

They’ll likely ask about your business model, traction, competition, customer acquisition strategy, unit economics, scalability, risks, and your exit strategy.

• Angel investors: Individuals investing personal funds, often at early stages.
• Venture capitalists (VCs): Firms investing pooled funds in high-growth startups, usually at seed to Series C.
• Private equity: Firms that invest in mature businesses, often for restructuring or growth.

Valuation is based on traction, revenue, growth potential, comparable startups, and negotiation. Early-stage valuations often rely more on future potential than current revenue.

Weak business model, unclear financials, lack of founder commitment, poor market understanding, unrealistic projections, or a “one-man show” without a solid team.

You’ll sign legal agreements (Heads of Terms, shareholder agreements), align on governance, and provide regular updates. Investors may also help with mentorship, networking, and future fundraising.