Investor-Ready in 2025: What Founders Get Wrong (and How to Fix it)
By Soni Zaman, Powdr, in conversation with Daniel Hayhurst, corporate partner at Brabners.
Part of Powdr’s ‘Founders in Focus’ Series – created with insight from the experts who support founders prepare, plan and raise.
For any early-stage founder, raising investment isn’t just about funding – it’s a test of how well you understand your business, your numbers and your long-term plan. Yet even the most promising startups often stumble when it comes to investor readiness. The good news? Most of these gaps are avoidable, if you know what investors are really looking for.
We recently sat down with Daniel Hayhurst, a corporate partner and seasoned expert at Brabners specialising in venture capital and private equity transactions, to share what we’ve both seen from our sides of the table: what founders often get wrong and what great investor preparation looks like in 2025.
Founders focus on pitch decks but investors zero in on what’s behind them
Many founders obsess over pitch decks. But behind closed doors, investors do their diligence elsewhere. Daniel shared: “I see a lot of early-stage founders come in with beautifully designed decks but poor internal understanding of their cap table, terms or key financial assumptions. Its crucial that founders fully understand and evidence the detail that sits behind the deck, and that the deck, model and other key documents all tell a consistent story.”
At Powdr, we often remind founders that a deck gets you in the room, but your model keeps you there. That’s where the story has to hold together under pressure.
There’s no point pitching a ‘10x growth plan’ if your hiring timeline, runway and gross margin forecasts don’t stack up. Investors know how to stress-test assumptions. They’re not looking for hype, they’re looking for consistency, realism and a path to value creation.
Your model is where the story gets stress tested. It needs to hold up under scrutiny, especially when investors start asking the tough questions. Do your hiring plans align with your revenue targets? Does your CAC match your runway assumptions? Is your pricing strategy grounded in reality?
At Powdr, we help founders connect the dots between their narrative and their numbers. Because it’s not just about telling a great story, it’s about proving you can deliver it.
The model isn’t just a model, it’s a signal
At Powdr, we help founders and advisors build investor-ready financial models – fast. But as Daniel puts it: “The model itself is never the only thing investors are looking at. It’s a signal. It shows whether a founder really understands their business and whether they’ve built something that can scale. The model will be a key part of the investment process, and founders will commonly be asked to warrant that the model and forecast are based on reasonable assumptions. The model will also play a key part in corporate governance post investment, with terms commonly stipulating that founders will deploy investment funds in line with the model and will seek investor consent for significant spending that is not included in the model. Its therefore crucial that founders are confident that the model is robust from the start of the process.”
A well-structured model should answer three investor questions:
• Can this business scale profitably?
• Does this founder know their levers?
• What happens to our capital once we deploy it?
If your model can’t support those conversations, you’re not ready to raise.
Due diligence starts earlier than founders think
Another common mistake? Assuming due diligence starts after a term sheet lands.
“Due diligence can be intensive, and investors will be expecting to see a consistent picture as they go through each layer of the process,” Daniel explained. “Investing time ahead of the start of the process to ensure that you are ready for diligence, with clear and consistent documentation, all helps to build confidence through the process”.
At Powdr, we’ve seen firsthand how much smoother a raise becomes when financial and legal readiness are baked in early. That’s why we advocate for a joined-up approach: bringing together legal partners like Brabners with financial tools like Powdr to give founders a fully investor-aligned view.
Term sheet terms can look great and still be wrong for you
When you’re in the thick of a raise, any term sheet can feel like a win. But not all money is good money.
“The best-looking term sheet on paper might not be the right one in practice,” Daniel warned. “Founders need to look beyond valuation. What’s the investor’s track record? Do they support companies at your stage? What do they expect operationally post-investment?”
Understanding your cash runway, future dilution and funding roadmap is critical. Smart investors don’t just assess your idea – they assess your setup. That’s why having strong legal and financial advisors in your corner is essential.
“The founders who raise well tend to surround themselves with great people early,” Daniel noted. “It’s not just about getting advice when you’re signing. It’s about structuring things right from day one.”
These are high-stakes decisions. That’s why we build Powdr, to help founders scenario-plan with speed and clarity before they sign anything. That means understanding what each deal means for your equity, your team and your timeline. Because the ‘best deal’ is the one that sets you up to win – not just now, but at your next raise too.
Time kills deals and founders often kill their own momentum
There’s one bottleneck that doesn’t get talked about enough: the founder.
“Founders are often so involved in every part of the process that they unintentionally slow it down,” Daniel said. “If you’re trying to do legal, financials, team and growth simultaneously during a raise, it’s a recipe for burnout or missed opportunities. Founders raising for the first time often underestimate how intensive the process will be and fail to consider how they will juggle the demands of the deal with the day to day running of the business. ”
This is where process and good tooling becomes essential. At Powdr, we help founders and finance teams prepare their forecasts in hours, not weeks. That gives them time back to focus on what matters most: building and closing.
The North is rising
We’re delighted to be part of a broader shift. Manchester and the North are seeing a surge of early-stage activity. Public sector support is growing and regional investors, accelerators and legal firms are stepping up – and with the right support, founders can raise from anywhere.
We’re proving that you don’t have to be in London to raise smart money – you just need the right tools and support.
It’s about clarity, not complexity
Great founders know their numbers. Great investors can spot when they don’t.
At Powdr, we don’t believe in over-complication. We believe in clarity, logic and speed so you can raise with confidence, not chaos. Financial modelling isn’t about dazzling investors. It’s about giving them confidence. The same applies to your legal structure, your cap table and your story. With the right tools and partners, founders can take control of their raise and avoid the noise that so often derails it.
Whether you’re preparing for your first round or planning a scale-up raise, one thing is clear: investors don’t just back ideas, they back preparation.
Raise with confidence – and the right support
Fundraising isn’t just about vision. It’s about showing investors you’re ready – in your numbers, in your terms and in your structure. That’s why founders need the right legal and financial partners early.
Whether you’re preparing your first round or scaling up, expert legal advice can be the difference between a good deal, the right deal or no deal.
About Brabners
Brabners is a purpose-led national law firm supporting entrepreneurs, scaleups and investors across the UK. With deep experience in venture capital, equity fundraising and corporate transactions, their team helps founders raise well – with the right terms, the right structure and the right support. Contact Daniel Hayhurst: Partner, Corporate (Brabners)
✉️ daniel.hayhurst@brabners.com
☎️ 0151 600 3155, 07801 285 045 🌐 www.brabners.com
Want to raise with confidence? Start with a model that tells your story and stands up to scrutiny.
