How to ask for funding and actually get it?

“Are you in?” This question typically lies at the heart of each startup pitch. And, of course, founders expect to hear a desired “yes” from investors when they ask for funding. 

But is this “yes” easy to get? Not quite, actually. But your chances are significantly higher if you:

✅ Have a cool solution that solves a big problem;

✅ Know where to find investors for business;

✅ Know how to approach these investors;

✅ Have a really cool pitch deck that can communicate your business.

Of course, these are just the basics—you surely need much more to get your funding request approved. Fundraising is complex, and you must consider many nuances (even those you can’t control, like economic headwinds, political conflicts, investor behavior, market conditions, and more) to arrive at your destination successfully. 

However, knowing who and how to ask for funding and what to have with you is already a good starting point. 

In this article, we’ll speak exactly about this: how to get business investors, which mistakes to avoid when asking for funding, and how to make investors closer to writing you the check you need.

Let’s get cracking!

Asking for funding: Why startups may fail

The short answer to why many startups fail to get their investment request approved—they don’t know how to do it right. 

Of course, fundraising is a game with lots of variables that may affect the endpoint, but if you know how to make each variable work for you, the chances for a better result—getting venture funding—double up.

The best way to understand how to make things work for you is to check what doesn’t work first. We’ve collected some common problems startups may face when asking for funding.

Problem #1: You don’t have a clear investment request

Although it’s clear as day that if you want to ask for something, you need to make sure that the other side understands what exactly you need. However, many startups miss out on this. How? They simply assume that investors will understand their needs without a proper explanation.

As a result:

❌ Startups don’t clearly put how much money they need and why: It’s not enough to say, “We’re raising $1 million.” You should explain why and where this money will go. For example, you may say 40% for product development, 35% for marketing needs, 15% for operations, etc. The most important thing here is to show how much money you need and why you need it. 

❌ They don’t give clear funding milestones: Leaving investors guessing what exactly they’ll get for their money can make them hesitate. When you ask for funding, you need to show what your plan is and how you’re going to put it into action. For example, “With this $1 million round, we aim to 10x our user base, break into new markets, and hit $500K revenue growth by 202X.”

❌ Some founders don’t connect their investment request to returns: One of the main points for investors is to make sure their money will generate returns. That’s why, without a growth plan or financial projections, your ask for funding may sound weak (even if it’s structured well). 

Problem #2: You go to the wrong investors 

Investor targeting and outreach don’t work this way—pitching to all the impossible investors, thinking that the more VCs see your company, the better. That’s the way to waste time and frustration rather than having your funding request approved. 

What if these investors don’t fund your industry or stage? Or maybe they’re more interested in backing subscription-based models than DTC? When you don’t know the investment focus of potential investors, you miss the opportunity to get to the right ones faster. 

As a result, you may get more and more “No,” thinking that your solution isn’t interesting to anyone, but in reality, you’re just showing it to the wrong people. Also, some startups focus only on reaching big names while ignoring angel investors, family offices, and syndicates, which may also be great destinations for your ask for funding.

Problem #3: You don’t know how to approach investors (even if they are the right ones)

Of course, warm intros work the best. When someone has already mentioned your name in front of an investor, you stop being just another random startup asking for funding. Yet, even if you don’t have a warm intro, it’s okay, you may use cold outreach. It also works well (if conducted right). 

But some startups don’t know how to attract investors. They either send mass emails or write long scattered messages. And even if they have a warm intro, they may come unprepared—no solid pitch, no clear business plan, or not following up properly after the conversation.

Problem #4: Your pitch deck is bad

Even if you think that your pitch deck is cool, investors might have a different opinion. At Waveup, we’ve made tons of investor presentations, and we know what VCs expect to see. 

If your deck is NOT clear and organized, lacks solid data and investment narrative, and is, in general, complex or text-heavy, it may turn investors away (check what else investors may find as a red flag here). Investors don’t just look for ideas; they want to see how these ideas will work and, more importantly, bring money. A killer pitch deck helps them see this.

Problem #5: You don’t know what questions to ask investors

It always takes two to tango. Just as an investor evaluates you and checks if this deal will work for them, you should do the same—to know whether this investor is a perfect fit for you. 

How to do this? Look through the possible questions to ask investors:

1️⃣ How involved are you with the startups you invest in?

2️⃣ What value do you bring beyond money?

3️⃣ Do you usually lead rounds?

4️⃣ How long do you usually stay invested, and what’s your preferred exit strategy?

5️⃣ Do you go follow-on rounds?

How to ask for funding (and actually get it)

So, how to get your request for funding approved? Here are the steps that may help you do this.

Step 1: Find the right investors

Even if you have the best pitch in the world, but you’re targeting the wrong addressee, you AREN’T likely to get a positive response. Investors typically have their own investment criteria—industries, stages, business models they often invest in—and when your business doesn’t check in boxes, it may be a game over even before you start. 

That’s why the first step to make your ask for funding work is to find investors who will potentially want to give you money. 

If you don’t know where to find investors for your business, try to:

✅ Research investors looking for projects like yours to fund;

✅ Check if they have already backed similar businesses (just mind that investors don’t always fund direct competitors);

✅ Learn how to deal with cold outreach so that it brings you great results;

✅ See how you can get warm intros (check your networking, attend investor events, ask other founders, join an accelerator or incubator, or hire a VC consultant).

Step 2: Show investors your potential (that they’ll make money with you)

Of course, ideas and the social or environmental impact of your solution matter a lot, especially if this is something that can address a really big problem or a pain point for many people. But investors also care about returns. And your pitch deck is supposed to prove to them that your business is profitable, scalable, and sustainable.  

Here, is what you need to show:

📌 A scalable business model (not just a cool idea);

📌 Traction—when asking for funding, show that you already have something to bring to the table, proving your potential and showing their returns are real (if you don’t have traction, check here what you can do in this case);

📌 Market opportunity—investors want to see that you’re solving a big enough problem to bring them returns (check our guide on TAM, SAM, and SOM here);

📌 Competitive moat—show VCs what makes your business defensible and hard to replicate;

📌 Growth strategy and a GTM plan—this is how you’ll attract customers and scale your business (check out our CAC and LTV calculators to know if your things with customer acquisition are going well);

📌 Solid financials and projections—investors want to see scalability but without burning too much cash (here are the main growth metrics startups should care about);

📌 The right team on board—strong teams matter as much for investors as cool ideas, so be sure to show all your team’s potential (check here how to do it right);

Step 3: When you ask for funding, be as clear as possible

Remember that VCs invest in growth, potential, and impact, not in survival or wishful thinking. To help investors see yours, you need to explain to them:

✅ How much money you need (and why exactly such an investment request, not more, not less);

✅ Where this money will go (product development, team, marketing, etc.);

✅ What investors will get in return (convertible notes, SAFEs, equity).

🔎 Don’t know how to craft a winning ask and use of funds slide? Check our guide.

Step 4: Be ready to ask & answer investor questions and follow up

There are two at the investment table—you and the investor—and both of you try to understand whether each one is a good match. Investors may ask tough questions, and you must know how to answer them. Expect them to ask for additional documents; that’s why you’d better keep all your business information in a well-organized data room. This will help you avoid delays, confusion, and mistakes. 

It’s relevant to know which questions to ask investors. The more details you know, the stronger your position in negotiations. Ask investors about the level of their involvement, the value they bring beyond money, follow-on rounds, exit strategy, etc. 

Also, don’t forget to follow up.  Investors are busy and time-strapped, so you may send a professional and concise email with added value—an update, milestone, or just an answer to a previous question. Just don’t be too pushy or annoying—if you don’t hear from them for too long, it may be a sign of a “no” and that you need to keep asking for funding from other VCs. 

Wrap-up: Asking for funding isn’t about luck

It’s about having a solid strategy to find and pitch to the right investors, business materials that can show investors your business potential, and the ability to communicate your message clearly. Why should potential investors and customers care about your business if you can’t prove to them that it’s worth their time and money? 

Remember that finding the right investors isn’t about pitching to as many VCs as possible; it’s about doing your homework on funds that invest in your stage, industry, business model, etc. Otherwise, you’re just wasting your time and getting more frustrated (when you keep hearing “no” from people who don’t typically fund businesses like yours). 

When you ask for funding, be sure you’re knocking at the right door with the right business materials. Fundraising isn’t just about putting your investment request in order but about showing why your startup is the right destination for the investors’ money.

If you don’t know where and how to get business investors and whether your startup is ready for fundraising, take a VC quiz and get expert advice on your fundraising readiness.