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Fundraising12 min read

What Investors Look for in Business Idea Validation

Planning to raise money? Learn the 5 validation metrics that VCs and Angel Investors care about most. Don't pitch without these data points.

Validate Your Idea Free

Investors do not invest in ideas. They invest in evidence. If you walk into a meeting with just a "great concept," you will walk out with nothing. Validation is the process of collecting the proof that VCs and Angels need to see.

📊 The 5-Metric Investor Scorecard

MetricWhat Investors AskThe "Gold Standard" Target
1. Pain DepthIs this a "Migraine" or a "Vitamin"?80%+ of 30+ interviews confirm urgent pain.
2. Sticky LogicWhy won't they leave next month?High switching costs or daily usage patterns.
3. TractionIs there real momentum?A waitlist of 1,000+ or active pre-sales cash.
4. Unit MathIs growth affordable?LTV to CAC Ratio of 3:1 ($1 in → $3 out).
5. The MoatWhy can't Google crush you?Proprietary tech, network effects, or data edge.

🤒 Solve a Migraine, Not a Vitamin

Investors want to fund "Aspirin" (urgent relief) because it's easier to sell than "Multivitamins" (long-term health). Use this table to categorize your idea:

💊 The Vitamin (Hard to Fund)⚡ The Migraine (Easy to Fund)
Nice-to-have: "I want to help people organize."Urgent Need: "I save businesses $5k a month."
Deferred Value: "You'll feel better in a year."Instant ROI: "We solve this pain in 5 minutes."
High Friction: Requires the user to change habits.Seamless Fix: Integrates into their current workflow.

The "Customer Math" (LTV to CAC Ratio)

This is the single most important number for most VCs. They need to know that for every $1.00 they give you for ads, you can reliably generate at least $3.00 in lifetime value.

🏁 The Final Investor Checklist

  • Prove 30+ strangers have the problem.
  • Project a clear 3:1 LTV/CAC ratio.
  • List at least 3 direct competitors and your "Gap Fix."
  • Show a 90-day milestone roadmap.

Don't Pitch Unprepared

Before you walk into the room, you need a data-driven report that speaks the investor's language. Worthify analyzes your idea's success probability using real market trends and competitive benchmarks.

Analyze My Idea for Investors →

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