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There’s a piece of advice that’s been floating around startup circles for years. You’ve probably heard it: “Investors care more about your story than your numbers. Just sell the dream.”
Sometimes, it’s framed as motivational. Other times, it’s passed down from “advisors” who mean well but haven’t actually raised money themselves. Either way, it’s misleading — and for a lot of early-stage founders, it’s exactly what sinks their shot.
The truth? Most serious investors look at both. But if you walk into a room and can’t speak clearly about your numbers, that room closes up fast.
I’ve seen founders with big markets and great pitch decks get passed on, not because the idea wasn’t interesting, but because they couldn’t explain how the business worked underneath.
Related: How to Get Funding: The Dos and Don’ts of Raising Capital From Investors
You don’t need a finance degree, but you do need answers
Investors aren’t expecting perfect models. They know early-stage companies are messy. But they do want to see that you know where your money’s going, how it’s coming in and what your next dollar is supposed to do.
Can you explain your current burn rate? What’s your actual runway — meaning, not just “we raised $1M,” but how long that money lasts at your current pace? How much does it cost to acquire a customer, and are those customers sticking around?
You don’t need ten slides to answer those questions, but you do need to be ready for them. Because when you’re not, it sends a message: You’re still thinking like a product builder, not a company builder.
That’s the gap that kills a lot of deals.
The numbers don’t replace the story — they prove it
The “just focus on the vision” advice sounds good. It flatters the founder’s ego. It tells you your big idea is enough.
However, vision alone doesn’t raise rounds. Numbers give the vision weight. They show how the idea plays out in real-world behavior — what users are doing, how revenue is moving and how the operation scales.
It’s not about spreadsheets for their own sake. It’s about showing that you understand your business like an operator, not just a dreamer.
And the bar has gone up. In a 2023 DocSend report, investors spent the second-most time on the financials section of decks — right after team slides. In other words, once they know who’s behind the company, they want to know how the business actually works.
Being early doesn’t mean you get a pass
It’s easy to think, “We’re pre-revenue, so there’s not much to show yet.” But even pre-revenue businesses should be tracking something — user behavior, early conversion rates, retention from beta users or traction from waitlists. Something that proves demand and shows you’re paying attention to what matters.
Early doesn’t mean immature. In fact, the most investable early-stage teams are the ones that show signs of being operationally sharp from day one.
I’ve sat in meetings where founders with less revenue got further in conversations simply because they spoke clearly about how much they spend, how long it lasts and what specific traction they expect to unlock with more funding.
They weren’t selling perfection; they were showing control.
Investors don’t want potential — they want preparation
A big part of early-stage investing is pattern recognition. And one of the patterns that stands out most — positively or negatively — is how a founder talks about their business under the hood.
Do they dodge financial questions? Do they freeze when asked about margins or CAC? Or do they answer plainly, even if the numbers are small?
The answer says a lot.
Because here’s the truth: Fundraising is emotional for the founder but analytical for the investor. They’re looking at the math, the trajectory and whether the founder knows what levers need to be pulled next.
When someone says, “Investors don’t care about financials,” what they’re really doing is trying to shortcut that process. But there are no shortcuts. Not anymore. And have never been!
Related: The 10 Things You Should Cover in Every Investment Pitch (Infographic)
Raising capital is never easy, and advice is everywhere. Some of it’s useful. A lot of it is noise spread by wannabe advisors.
However, if someone tells you to ignore the numbers and “just pitch the dream and vision,” press pause. That advice might sound motivating, but it’s dangerously incomplete.
You don’t need perfect projections. You don’t need fancy charts. But you do need to own your numbers. You need to understand how your business runs, how it burns and what moves it forward.
That’s not the investor’s job to figure out. It’s yours.
Founders who know their numbers don’t just raise capital — they earn respect in the room. And in this market, that matters more than ever.
This story originally appeared on Entrepreneur
