Hi! I’m glad you’re here. You’ve made it to issue #77 of VC Demystified🪄.
My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.
Today’s deep dive: How to make investors believe in your startup, without a single sale
My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily for free across my socials. This newsletter may contain paid partnerships or affiliate links.
VC Job Openings Preview (3 of 10)🪄
M12 is hiring a Senior Associate.
Location: San Francisco
https://www.linkedin.com/jobs/view/4311167342
Giant Ventures is hiring a two Investment Analysts.
Location: London, San Francisco
https://giant-analyst-launchpad.lovable.app/
Octave Capital is hiring an Investor.
Location: NYC
https://x.com/jeremygiffon/status/1907113577963810930?s=46
Read time: 5 minutes
How to make investors believe in your startup, without a single sale
If you’re pitching or evaluating a pre-revenue startup, traction is still important.
Investors want evidence that the market exists, the product resonates, and momentum is building, even before dollars come in.
Here are 9 ways to prove that demand exists, and how to make each signal more credible and data-driven:
1. Beta Testing (Proof of Early Demand)
Running beta tests shows real user interaction, not just opinions.
Highlight adoption rates (e.g., 200 users onboarded in 2 weeks).
Share retention or engagement metrics (e.g., 60% of testers still active after 30 days).
Include qualitative feedback quotes from users or companies.
If B2B, mention pilot use cases or case study results.
Investor takeaway: People are using your product, which is evidence of product-market pull.
2. Waitlist Growth (Proxy for Market Excitement)
A large or fast-growing waitlist is a powerful demand signal if it’s credible.
Include raw numbers and growth over time (e.g., 5,000 → 12,000 signups in 45 days).
Share conversion rates from signup to engagement (e.g., 30% completed onboarding survey).
Show demographics or segmentation to prove alignment with your ICP.
Investor takeaway: You’re not pushing the market, the market is pulling you.
3. Customer Interviews & Surveys (Validation of Pain)
When you don’t yet have users, show depth of understanding.
Conduct 50+ structured interviews with potential users or buyers.
Quantify results: “78% of respondents said they’d pay for X if it solved Y.”
Highlight repeat insights - themes that confirm a real, shared problem.
Investor takeaway: You’ve done the work to derisk the idea through real market validation.
4. Community & Audience (Proof of Engagement)
An engaged audience can be a moat and a growth engine.
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