A data-backed guide to what early-stage investors want: traction, retention, market size, unit economics, and founder execution. Includes current stats on women’s funding and Theanna’s Funding Framework.
The state of funding for women founders (and why this guide matters)
- Female-only founding teams received ~2–2.3% of global VC dollars in 2024 (the rest went primarily to all-male or mixed teams). Founders Forum Group
- In the U.S., female-founded companies represented ~9% of VC-funded startups in 2024 and captured ~$7B vs $280B for male-founded teams. Technical.ly
- Despite underfunding, multiple studies show women-led startups are at least as strong—and often more capital efficient—than peers (e.g., BCG analyses on revenue per dollar raised). The VC Corner
- Women now hold ~18–19% of top investing roles at U.S. VC firms—progress, but still minority representation among check-writers. The Wall Street Journal
Bias in the system persists (even in femtech), so clarity on what investors actually evaluate—and how to present it—matters. The Guardian
The investor checklist (what most early-stage VCs actually evaluate)
1) Team & founder-market fit
Investors back people first: grit, speed, and insight into the problem space.
Signals include prior execution, domain proximity, and evidence you learn fast (tight feedback loops). Accelerator mentors echo this consistently. Affinity+1
2) Market size & urgency of problem
Clear TAM/SAM with a painkiller problem (not a vitamin). Early-stage investors pressure-test whether the wedge can expand into a large opportunity. OpenVC
3) Traction & retention > vanity metrics
Even tiny numbers matter if they show repeat usage and willingness to pay. For SaaS/marketplaces, investors look for:
- Early MRR/GMV and MoM growth
- Retention / churn (are users sticking?)
- Sales efficiency and early CAC payback (even directional) The VC Corner+2OpenVC+2
4) Business model & unit economics
Evidence the engine can scale: gross margins, early LTV/CAC logic, and a credible path to distribution (channels/partnerships). Excedr
5) Milestones & use of funds
Investors want to see what the next 12–18 months unlock (e.g., “$1 in → $3 out” plan). Explicit round goals beat generic “hiring + marketing.” techstars.com
Common red flags investors call out (and how to fix them)
- Metric confusion (no retention or CAC visibility). Fix with a simple dashboard tracking activation, 30/60/90-day retention, CAC tests, and payback. techstars.com
- Over-engineering pre-PMF (perfect product, weak usage). Shift to fast experiments, feature gating, and weekly user interviews. Affinity
- Hand-wavey market (TAM theatre). Tie your wedge to bottom-up math (ICP count × ARPU). OpenVC
- Unclear use of proceeds (no milestone map). Tie dollars to specific unlocks: channel validation, key hire, or regulatory/tech milestone. techstars.com
Women-led specific: what top women-focused funds require
- HearstLab: women-led, tech-enabled B2B/B2B2C, working product + market validation, and strategic fit with Hearst domains. Pre-Series A. hearstlab.com+1
- Portfolio scale signal: 60+ women-led companies; ~$2.5B combined valuation (context for aspiration + proof). hearstlab.com
- All Raise: ecosystem view—growing percentage of female check-writers and a push to double women decision-makers and seed dollars to women by 2028/2030. This indirectly boosts odds for women-led deals. All Raise+1
The ROI case: why investors should want more women on cap tables
- BCG-cited work shows women-led startups generate more revenue relative to dollars raised—a capital-efficiency edge. The VC Corner
- First Round’s historical cohort analysis reported mixed or female-founded teams outperform (a talking point for your deck’s “why us/why now” slide). sheangelinvestors.com
Use these as two slides: “Capital Efficiency” and “Diverse Teams Outperform,” with sources footnoted.
Theanna’s Funding Framework (how to become “investor-ready” faster)
Phase 1 — Prove demand (before you pitch)
- Build Mode guides weekly customer interviews, live MVPs (via our no-code partner Lovable), and early revenue tests.
- Dashboard tracks MRR/GMV, retention, CAC experiments, and payback so you aren’t pitching vibes. The VC Corner+1
Phase 2 — Package the story like an investor
- Auto-generated metrics one-pager (TAM, ICP, traction, retention, unit economics).
- Milestone roadmap = “Use of funds” slide (what $ will unlock in 12–18 months). techstars.com
Phase 3 — Target aligned capital
- Investor map of women-focused and sector-aligned funds (e.g., HearstLab) with criteria baked in so you pitch fit, not just “funds that fund women.” hearstlab.com+1
What to put in your deck (10 slides investors expect)
- Problem → urgency (who loses money/time today)
- Solution & demo (show, don’t tell)
- Market (bottom-up math + wedge → expansion) OpenVC
- Traction (MRR/GMV, growth, retention cohorts) The VC Corner+1
- Business model (pricing, margins)
- Go-to-market (channels, partnerships, CAC tests)
- Competition & moat (why you win)
- Team (founder-market fit; advisory bench) Affinity
- Financial plan (12–24 mo)
- Use of funds + milestones (specific unlocks) techstars.com
Equity, governance, and bias: navigate smartly
- Expect pattern-matching: prepare crisp proof points for technical credibility, even if you’re non-technical (e.g., senior advisor/CTO-of-record, quality dev partner, shipped milestones). Affinity
- In sensitive categories (e.g., femtech), be ready to quantify ROI (CAGR, market expansion, payer savings) to counter “mission-only” framing that research shows can bias outcomes. The Guardian
Your investor-readiness self-check (5 yes/no questions)
- Do we have documented retention (or strong engagement proxy)? The VC Corner
- Can we explain how $1 today becomes $3 in 12–18 months (channel + payback math)? Excedr
- Is our TAM believable via bottom-up math (not just a top-down slide)? OpenVC
- Do we have a specific milestone plan for this round? techstars.com
- Are we pitching aligned funds with criteria we actually meet (e.g., women-led, sector fit, stage)? hearstlab.com+1
If you have 5/5, you’re ready. If not, Theanna’s Funding Framework shows exactly what to shore up.
Key stats slide (you can paste straight into your deck)
Bottom line
Investors want evidence: real customers, sticky usage, a large (and credibly sized) market, and a plan where capital accelerates what’s already working. That’s it.
You bring the execution; Theanna helps you instrument the proof—so when you’re in the room, you’re not asking for belief, you’re presenting data.
Ready to get investor-ready? Activate Theanna’s Funding Framework inside Build Mode to turn your traction into a fundable story—with the exact metrics, milestones, and target-list you need.
References & further reading
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