Guidance

Track 1: Investor Readiness Essentials

Published 2 December 2025

PREPARING FOR INVESTMENT 

INVESTOR READINESS CHECKLIST 

In preparing for investment, especially at critical stages like Series A, founders must present a clear, credible and compelling story that builds investor confidence quickly.  

Investors are not just looking for ambitious technology; they want to build a viable and well informed ‘investment thesis’ that articulates a real market opportunity, a capable team with credible traction and a coherent plan that aligns with financial, governance and sector realities. This means you need a clear ‘business thesis’ supported by succinct, evidence-backed materials that focus on what truly matters.     

This checklist breaks down the essentials that investors scrutinise when deciding whether to back your business. Each item is vital to demonstrate that you understand your market, customers, competitive advantages and risks, and have a leadership team behind you ready to execute.  

Investor Readiness Essentials Checklist 

• A clear vision driving credibility in your market   

• Articulation of the customer proposition (benefits over features)   

• Show you have the right management team to drive growth   

• Demonstrate traction with pipeline evidence and revenue projections   

• Market sizing with evidence-backed TAM / SAM / SOM   

• Focused initial market niche and competitive differentiation   

• Aligned story with your financial, governance and team   

• Clear sector-aligned growth plan with strong upside potential   

Further detail on each item and how investors will use it in their decision-making can be found on the following pages. 

1. A clear vision driving credibility in your market 

Clearly articulating your vision is the first step to enticing an investor to your business. It is particularly relevant to start ups, as businesses scale, the focus will shift more towards market position, business model, track record and growth plan. 

A clear vision combines purpose, ambition and direction and answers three questions: 

• Why do we exist?   

• Where are we going?   

• How do we make an impact?   

A well-crafted vision becomes a north star for the business, guiding decisions, inspiring confidence and helping investors and partners see the long-term potential. 

Having a clear vision is essential when engaging investors as it provides confidence, clarity and conviction for investors to believe in both the business and its leadership. A strong vision tells investors not just what the company does, but where it’s going and why it matters, helping them see the long-term opportunity and return on their investment. A clear vision is so important when seeking investment because it will: 

• Demonstrate strategic clarity   

Investors back businesses with direction. A well-defined vision shows that the leadership team understand the market and has the conviction to preserve through the challenges ahead with purpose rather than reactively.      

• Inspire confidence in leadership   

A compelling vision signals ambition and capability. Investors want to see founders who can articulate a meaningful future and motivate others to follow it, including employees, customers and future funders.  

• Differentiate through scale of ambition and value opportunity   

In a crowded market, vision helps a company stand out. It highlights what makes the business distinctive and how it intends to create value in ways competitors can’t. Investors are drawn to businesses with a unique purpose and direction.  

• Create a unified culture and shared understanding of success   

A clear vision will attract investors and staff who are aligned to that vision. This will improve staff retention and facilitate better stakeholder management and trust.   

• Support long-term partnerships   

Investors are more likely to commit when they see a long-term opportunity that matches their own strategic interests. A clear vision provides a foundation for ongoing collaboration, not just a one-off transaction.  

2. Articulation of the customer proposition (benefits over features) 

A strong customer proposition shows investors that your business truly understands its customers and what motivates their choices. Whether you’re redefining a process, enhancing efficiency, or creating something entirely new, clarity about who your customers are and why they will choose you is critical to building investor confidence.  

Demonstrate commercial traction and momentum — not just technology innovation. 

Below are some key questions to consider when defining your customer proposition:  

• Who is your customer?   

Define your target buyers precisely. What are their specific characteristics e.g. services, company size, industry, geography? 

• What do you enable them to achieve?      

Describe what your product or service empowers customers to do better, faster, or more efficiently than before.   

• What advantages do they gain?     

Link to measurable outcomes and quantify where possible (improved performance, enhanced reliability, reduced cost, access to new capabilities).    

• Why is your offer distinctive?     

What makes your proposition hard to replicate? Proprietary data, technical edge, novel approach, strategic partnerships?  

• What are the additional demand drivers?     

Increase urgency by linking your proposition to current market dynamics (technological inflection points, regulatory change, or competitive pressures) that make adoption urgent.      

• How can you bring it to life with examples and evidence?   

Case studies or client testimonials can be used to bring this to life. If your company isn’t trading yet, then use other proof points such as market surveys, quotes from perspective customer interviews and quantified data points from credible sources.  

Example – ‘Space-Tech Scale Up’: 

• Customer: Operators of low-Earth-orbit satellite fleets. 

• Opportunity: Enhance fleet reliability and longevity to support expanding Earth-observation demand. 

• Proposition: AI-driven satellite optimisation software increasing uptime by 30%.   

• Distinctiveness: Proprietary telemetry data and patented anomaly-prediction models.   

• Demand drivers: Regulatory focus on debris mitigation and insurers’ new performance criteria make operational optimisation a necessity.  

3. Show you have the right management team to drive growth 

Your management team leads the company and their makeup matters deeply to investors. Curating the right team is key to the success of a smaller business, both for achieving sustainable growth and for attracting investor confidence. In the early stages, investors often back people before products, so the quality, balance and credibility of the management team can make or break an investment decision.   

There are usually 3 key things investors are looking for in a management team: : 

1. Balanced teams that combine technical experts with commercial experience      Demonstrate technical credibility by outlining key achievements to-date in product development and/or scientific achievements in the field. You will also need to demonstrate that your management team knows and understand the customer base and is able to sell into that customer base.  

2. Track record of scaling and/or managing large operational teams        Articulate the experience the management team has in scaling businesses or managing larger operational teams. This may be experience from previous roles or simply through demonstrating that you have hit every milestone to-date. 

3. Ability to recruit talent      At each stage in your company’s evolution, it will require new skills and experience. Be cognisant of this and recruit accordingly. Your ability to identify gaps and recruit the best talent will speak volumes to an investor about your leadership capabilities. 

A well curated management team drives business growth and investor confidence.   

There are several ways the management team directly impacts on business growth: : 

• Strategic direction and execution      

A strong management team has the capability to turn strategy into results, planning for the long-term but able to make fast, informed decisions in changing conditions.   

• Complementary skills and diversity of thought   

Growth depends on having a blend of commercial, operational, technical and financial expertise. A balanced team with complementary skills avoids over-reliance on a single founder and strengthens the quality of decision-making.    

• Operational resilience   

As the business scales, complexity increases. A capable management team helps put structure around growth, introducing systems, governance and accountability.  

• Attracting and retaining talent   

Strong, credible leadership attracts high-calibre staff and partners. People want to work for a business where leadership inspires confidence and direction.   

• Credibility with external stakeholders    

Customers, suppliers and strategic partners are more likely to engage with a business that has professional leadership, signalling maturity and reliability.  

A solid management team is important for building investor confidence because:  

• Investors back teams, not just ideas     

Even the best business model or product will fail under weak leadership. Investors look first for teams that have the experience, skills and chemistry to execute.  

• Reduced execution risk     

A well-structured team shows investors that the business can deliver, from product development and customer acquisition to financial control and compliance. It reduces execution risk, one of the biggest investor concerns.  

• Balanced leadership signals stability     

Investors want assurance that the company isn’t overly dependent on a single founder or personality. A diverse and empowered management team shows succession planning, shared accountability and long-term resilience.   

• Investor alignment and communication     

Investors seek teams that are transparent, coachable and open to collaboration. A management team that communicates clearly and manages expectations well gives investors’ confidence in ongoing governance and reporting. 

• Track record and integrity     

Experience matters. Investors look for evidence of past execution, problem-solving under pressure and integrity in decision-making.    

4. Demonstrate traction with pipeline evidence and revenue projections 

Investors want proof, not promises. Contracts, paid pilots, Letters of Intent (LOIs), partner letters, repeat customer usage data with dates and monetary values. Demonstrating traction with bottom-up evidence is one of the most powerful ways a business can build investor confidence. For investors, traction is proof that the business has moved beyond concept or theory and is showing real market validation, that customers not only want the product but are willing to pay for it. Traction validates market demand and reduces perceived risk.  

Investors want proof, not promises                  

Ideas are easy to pitch; evidence is harder to dispute. Investors need tangible proof that the business is solving a real problem, has identified its target market and is already generating measurable results.  

Validates market demand           

Traction shows that customers recognise the value of the product or service. It proves that the problem being solved is real, the solution works and there is willingness to buy, reducing perceived market risk. 

Indicates scalability                

Consistent customer engagement and revenue growth suggest that the business model can scale effectively, a critical factor for investors seeking return potential.  

Proves commercial viability          

Evidence-backed traction shows that the product or service works in practice and has sustainable demand. It bridges the gap between potential and performance.  

De-risks the investment   

For investors, early evidence of revenue, signed contracts, paid pilots, or Letters of Intent (LOIs) provides assurance that the business model is viable. It reduces uncertainty about commercial potential and scalability.  

Increases valuation confidence       

The more real-world proof you can show, the less speculative the investment is. Evidence allows investors to price risk accurately and justify stronger value.  

Demonstrates execution capability and builds credibility           

Investors want to see that the team can deliver results, close deals and manage growth. Demonstrable traction gives confidence that the business can execute its strategy and converting interest into tangible commercial outcomes.  

Investors are looking for evidence-backed traction that can be independently verified and tied to commercial performance. Key examples include:  

• Contracts or signed purchase orders    

Firm commitments that generate revenue.  

• Paid pilots or trials    

Proof that customers are willing to pay to test the solution.  

• Letters of intent (LOIs) or partner letters    

Clear indications of upcoming commercial relationships.  

• Revenue growth trends    

Data showing increasing sales, renewals, or repeat usage.  

• Customer retention and engagement metrics    

Frequency, usage rates, or net promoter scores.  

• Pipeline data with dates and values    

Realistic evidence of future business opportunities.  

Higher visibility, predictability and repeatability of revenue will enable investors to place higher value on these. The more quantitative and time-bound this evidence is, showing actual figures, timelines and conversion rates, the better.   

5. Market sizing with evidence-backed TAM / SAM / SOM 

Being able to clearly evidence the size of your market, through credible, data-backed analysis of the Total Addressable Market (TAM), Serviceable Available Market (SAM) and Serviceable Obtainable Market (SOM), is essential for any business seeking investment. It demonstrates that the opportunity is real, scalable and well-understood, giving confidence that the business will deliver returns.   

Demonstrating market size is essential because:  

Investors look for: 

• Validates the scale of the opportunity        

Investors need to know that the business operates in a market large enough to justify their investment. A clear, evidence-based view of TAM, SAM and SOM shows the potential for growth, scalability and return on capital.  

• Reduces market risk       

A well-defined market assessment demonstrates that the team understands who the customers are, where they are and how they buy. It reassures investors that the opportunity isn’t overestimated or speculative.  

• Shows strategic focus       

Breaking the market down into TAM, SAM and SOM shows strategic discipline, that the business knows how to prioritise and target the most accessible and relevant segments rather than trying to “serve everyone.”  

• Informs realistic financial forecasting       

Market sizing provides the foundation for credible sales and revenue forecasts. Evidence-backed numbers help investors evaluate whether projected growth aligns with market potential and competitive dynamics. 

• Builds credibility and investor confidence     

Investors are far more likely to trust forecasts supported by independent data, customer research and logical assumptions. It signals that the business is rigorous, data-driven and commercially mature.  

Investors are looking for evidence-backed, well-structured market analysis that shows both the scale of opportunity and the plan to capture it:  

• Total addressable market (TAM)      

The total global or regional demand for the product or service if every potential customer were reached. Investors use this to gauge the opportunity’s upper limit.  

• Serviceable available market (SAM)      

The portion of the TAM that the business can realistically serve based on geography, target customer type, or regulation, showing relevance and focus.  

• Serviceable obtainable market (SOM)    

The share of the SAM that the business can capture in the next 3–5 years, a realistic, evidence-based target supported by strategy, resources and traction. (# target accounts × expected average contract value × win rate over 24–36 months). An SOM around 1-5% of SAM with explicit assumptions signals credibility.  

Investors want to see that these figures are:  

• Grounded in evidence      

Market reports, validated data and customer research, not assumptions.  

• Logically connected     

Each stage (TAM → SAM → SOM) flows from a clear rationale.  

• Linked to strategy     

Showing how the business intends to reach its target share.  

• Proportionate      

Ambitious yet credible, avoiding inflated or “headline” figures.  

6. Focused initial market niche and competitive differentiation 

Having a clear and focused initial market niche, and a well-defined explanation of how the business differentiates from competitors, is essential when seeking investment. It demonstrates to investors that the business understands where it can win first, how it will build defensible strength and how that foundation supports long-term growth.  

It’s essential to define a clear initial market niche because:  

• Focus builds credibility and early success    

Investors prefer businesses that dominate a narrow, defensible niche before scaling into broader markets. A focused approach shows strategic discipline, efficient use of resources and a higher likelihood of achieving product–market fit quickly.  

• Building value and momentum      

Trying to serve everyone from the start dilutes focus, stretches capability and hinders growth momentum within your target customer base. A focussed market allows you to build clear strengths that stand out from competitors in the market. Value is built on clear and well-articulated strengths of a business.  

• Establishes proof of market leadership     

Winning in a defined segment allows the business to demonstrate clear traction, measurable adoption, revenue and customer advocacy, which builds evidence for scaling. Dominating one niche builds investor confidence that the business can replicate success in adjacent markets.  

• Shows strategic growth pathway      

A clear initial niche acts as the launch point for expansion, showing how the business will move from its first market to adjacent opportunities. Investors want to see a logical, evidence-backed ladder for scaling, not a scattergun approach.  

Differentiating from your competitors in this market is critical because:  

• Proves defensibility      

Investors evaluate whether a business has a sustainable competitive advantage that competitors cannot easily replicate. It’s not enough to have a good product, there must be a moat that protects market share and pricing power.  

• Demonstrates unique value creation   

Clear differentiation, whether through technology, data, business model, or customer insight, shows how the business delivers superior value to customers compared with existing alternatives.  

• Reduces investor risk     

When a company can clearly articulate why competitors cannot easily copy its solution (e.g. through IP, cost advantages, switching costs, or regulatory barriers), it reassures investors that the business can defend its position and sustain long-term profitability.  

Investors are assessing two key things, market focus and competitive defensibility. Specifically, they want to understand:  

• Proven defensibility     

An initial market niche where you can establish dominance before scaling.  

• Winning edge     

What gives the business an advantage in its “wedge”, e.g. unique data, proprietary technology, cost efficiency, speed to market, or regulatory approvals.  

• Defensible advantage      

Why competitors cannot easily replicate or undercut, e.g. IP protection, cost curve advantage, regulatory moat, exclusive data, customer lock-in, or switching costs.  

• Evidence of competitive insight     

Demonstrated understanding of current and potential competitors and how the business differentiates in practice, not just in theory.  

• Scalable pathway     

Ability to grow in the existing market, new products and services to the existing customer base, or selling the existing product/service into adjacent markets.  

7. Align story with your financials, governance and team 

For a business seeking investment, it is critical to show clear alignment between its story, financials, governance and team. Investors are not just buying into a vision, they are assessing whether that vision is credible, coherent and executable. A strong investment case requires that every element of the business reinforces the same underlying narrative.  

Alignment across story, financials, governance and team is essential because it:  

• Demonstrates internal consistency and credibility    

A powerful investment thesis must be visionary and internally consistent. Investors expect the financial model, governance structure and team composition to clearly support the business strategy and milestones. If the numbers, roles, or governance processes don’t align with the stated growth plan, it undermines credibility.  

• Strengthens investor confidence during due diligence     

Investors dig deep into the details. During due diligence, they compare what was said in the pitch with what the financials, governance records and team structures show. Consistency across these signals preparedness and professionalism, while misalignment raises red flags and slows down decision-making.  

• Shows Operational Maturity and Readiness for Capital      

When financial forecasts, governance processes and team responsibilities are well-defined and integrated, it demonstrates that the business is ready to handle external capital responsibly. It gives investors’ confidence that their funds will be deployed effectively and monitored through appropriate oversight.  

• Builds Trust and Reduces Perceived Risk    

Coherence across all areas of the business, from story to structure, reduces surprises. Investors value transparency and honesty, including acknowledgement of gaps or risks, provided there are clear mitigation plans. This level of self-awareness and openness builds long-term trust.  

Investors look for clear alignment and supporting evidence across three core pillars:  

Financials

• Realistic forecasts that match the business’s strategic narrative.  

• Unit economics that support scalability and profitability.  

• Sensitivity analysis that anticipates different market outcomes.  

Governance

• Appropriate board structure and accountability mechanisms.  

• Regular reporting with appropriate cadence evidenced by supporting board packs and shows that the key sensitivities are being monitored.  

• Transparency in decision-making and performance tracking.  

• Clear oversight for financial management and investor relations.  

Team

• Defined roles and responsibilities aligned with strategic priorities.  

• Evidence that leadership skills match the growth stage of the business.  

• Succession planning and advisory support to fill any capability gaps.  

Investors expect these elements to reinforce one another, forming a coherent and dependable picture of how the business intends to achieve its goals.  

8. Clear sector-aligned growth plan with strong upside potential 

For a space business seeking investment, it is crucial to demonstrate a deep understanding of space-sector-specific growth drivers. The space sector operates within complex regulatory frameworks, long development cycles and rapidly evolving technology and cost dynamics. Investors need to see that the business understands these nuances as key factors shaping opportunity, risk and scalability.  

Understanding space-sector growth drivers is essential because:  

• Every market faces unique challenges, and space is no different      

It is shaped by a mix of government policy, regulation, global collaboration and private innovation. Understanding these dynamics, and how they influence demand and investment timing, is vital for making credible projections and reducing risk.  

• Demonstrates sector expertise and credibility     

Investors back management teams that truly understand their environment. Referencing space-specific growth drivers such as regulatory shifts, technology cost declines, increased commercial adoption and key export markets shows the business is grounded in evidence, not generalised market optimism.  

• Informs risk assessment and mitigation     

Be clear on constraints e.g. launch costs and supply chain dependencies, regulatory barriers such as International Traffic in Arms Regulations (ITAR), export controls, or licensing requirements. Being able to explain these gating items, and how the business plans to navigate them, demonstrates realism and awareness.  

• Strengthens strategic positioning and investor confidence     

Understanding specific growth levers (e.g. miniaturisation of satellites, cost curve declines in launch, or the rise of downstream data applications) enables the business to position itself where value is moving in the sector. This builds confidence that the strategy aligns with real market momentum.  

• Enhances the investment narrative      

When a business can articulate how macro drivers, such as international collaboration, government procurement priorities, or space sustainability initiatives, connect to its growth strategy, it shows strategic alignment and foresight. Investors see a team that understands its niche but knows how to grow within it.  

Investors assessing a space business are looking for evidence of sector fluency, a clear understanding of the factors influencing demand, competitiveness and risk.   

Specifically, they want to see:  

• Regulatory awareness    

Understanding of ITAR, export controls, launch and licensing frameworks and compliance pathways.  

• Cost curve knowledge      

Awareness of how declining launch and manufacturing costs impact the company’s economics and timing of market entry.  

• Adoption trends      

Data-driven insight into how commercial, government and defence customers are adopting new technologies or applications.  

• Export market priorities      

Identification of priority geographies for expansion, supported by evidence of demand, partnerships, or policy alignment.  

• Risk mitigation plans      

Clear strategies to address sector-specific bottlenecks such as regulatory delays, supply chain risk, or reliance on key partners.  

Application: How to draft your short-form investable thesis 

An investment thesis is a concise, high-impact summary of why your business is a strong, credible and investable opportunity. It should capture the essence of the business, the scalability and the evidence that the team can deliver, all in short form document (c.2-4 pages) that investors can read and immediately understand.  

Your investment thesis should follow this structure:  

Headline summary (the “hook”)    

Use the heading to make a statement that defines what your business does and positions it as a selling point.    

Example: “The leading UK company for technical flood risk monitoring.”         

Follow this with 6-8 bullet points highlighting the key attractions to investors making these specific to your business keep these clear, concise and punchy:  

• Unique selling points of the proposition.  

• Benefit to the customer/why you are winning in the market.  

• Key KPIs or stats which clearly demonstrate track record or benefit.  

• The scale of the opportunity (market size or pain point).  

• Skills and expertise of the management etc.  

Market opportunity 

Show that the opportunity is large, real and growing:  

• TAM / SAM / SOM: Use credible, evidence-backed numbers to size the market.  

• Growth drivers: Highlight trends (cost declines, regulation, adoption rates).  

• Niche focus: Define your initial market and plans for expansion  

Keep it focused on evidence and scale, investors should immediately see that the market is both attractive and achievable.  

The solution  

Stick to the key selling messages:  

• The solution you’ve built and how it directly addresses a customer need or provides a clearly defined benefit.  

• What differentiates your solution (technology, speed, cost advantage, regulatory moat, IP, unique data, etc.).  

Investors should clearly see why customers care and why competitors can’t easily replicate your advantage.  

Traction and validation 

Provide bottom-up evidence that proves market demand and execution capability:  

• Key customers, contracts, paid pilots, or LOIs (with dates and values)   

• Revenue growth or usage data showing adoption trends.  

• Strategic partnerships, export activity, or regulatory approvals.  

The goal is to prove traction, not just describe it (proof, not promises!).  

Team and governance 

Show why your team can deliver:  

• Founders’ and executives’ relevant experience, track record and complementary skill sets.  

• Governance structure and key advisors (e.g. board composition, reporting cadence)  

Investors back teams they trust who can combine vision, capability and discipline.  

Financial snapshot and funding ask 

• Include key financial highlights: revenue to date, growth rate, burn rate and runway.  

• Outline unit economics and how the current round will be used (e.g. product development, market entry, scaling).  

• State clearly the amount being raised, the use of funds and the impact expected (e.g. revenue milestones, market expansion, team growth).  

Keep this section data-driven and specific, investors should be able to see how capital translates into growth.  

Investment rationale (why now, why us) 

End with a short, confident paragraph that answers the investor’s key questions:  

• Why this market? (timing and growth drivers)  

• Why this business? (unique position and traction)  

• Why now? (momentum, regulatory shift, or market inflection point)  

This section is your persuasive close, summarising the logic, timing and evidence that make your business a compelling investment opportunity.    

Below we have articulated some key principles for drafting:  

• Be concise     

Keep the word count low, be clear and structured. The thesis should be explainable in 60–90 seconds, summarising 6-8 key attractions with statements backed by facts and “so what?” explanations.  

• Use evidence, not adjectives     

Replace “huge market” with “£2.3bn TAM growing 12% annually.”  

• Keep visuals simple      

Use one or two charts or graphics if helpful (e.g. market map, traction graph).  

• Maintain internal consistency     

The thesis must align with your financials, team structure and milestones, investors will check.  

• Lead with strength     

Prioritise your biggest evidence points and advantages; don’t bury them halfway down the page.  

• Don’t over crowd each page      

Investors will only spend a short time reviewing this, so make sure the key messages are easy for the eye to pick out. People will read in a “Z” motion, i.e. top left to top right, then bottom left to bottom right so make sure the most important points are in the top left!  

• Avoid dense text      

Opt for bullet points for accessibility. Investors sift through many pitches; clarity ensures yours stands out and is remembered. Easier comprehension leads to higher investor engagement and deeper diligence.

This information is a non-exhaustive summary of some of the factors which may be relevant to seeking investment in the space sector. Persons should take independent legal and professional advice before seeking any such investment.