The tech ecosystem is becoming increasingly diverse and distributed, yet the network-driven nature of venture capital often leads to inefficiencies, causing many significant opportunities to be overlooked. Raising early-stage VC funding as an underrepresented founder can sometimes present challenges, but with the right mindset and approach, success is very achievable.
Early-stage VCs prioritise startups led by exceptional founders and teams who are passionate, mission-driven, resilient, and demonstrate a strong product-founder fit. They seek businesses in large, growing markets that offer unique value propositions, clear differentiation, and a solid product-market fit. Scalability is another key factor.
Differentiation doesn’t need to rely solely on groundbreaking technology; it can also be built through excellent product design, unique distribution channels, a strong brand, network effects, or a “cornered resource.” To overcome inertia and attract customers away from existing solutions, having a product that is “10x better” is often crucial.
At Antler, we invest in hundreds of startups around the world every year, and we work with thousands of aspiring founders in our residencies. The advice we give to our founders is that there are three foundational elements that every founding team needs to have in place in order to successfully raise:
Exceptional founders: Investors seek to back exceptional founders whose unique combination of insight, experience, ambition, and work ethic positions them to build companies with the potential for world-class success.Solving a problem in a growing, VC-backable market: Investors are keen to back businesses operating in large, expanding markets that provide unique value propositions, clear differentiation, and strong product-market fit. Establishing a presence in an exciting space with significant growth potential is essential for capturing the attention of VCs.Strong network – founders with strong networks hold a competitive advantage in the early stages of their companies. A robust network not only provides options for fundraising but also grants access to customers, leads, and advisors.
Underrepresented founders sometimes lack access to good networks or funding, so they may need to focus on building additional skills. By developing these important skills, they can catch the eye of investors and improve their chances of success.
Strong founder-market fit: Many founders believe they need to be Oxbridge graduates with experience at Google or a unicorn to be considered exceptional. However, VCs look for founders who possess a deep understanding of the problem they aim to solve and the market they operate in. Founder-market fit is a crucial indicator of potential success.
George Robinson is the co-founder of Gladys, an online platform that connects individuals with trusted, verified carers across the country. A trained barrister, George was inspired to create this company following a personal family experience that revealed the shortcomings of the care system in the UK. She is now dedicated to building a transformative business that addresses these challenges. Her passion and unique insights into the sector set her apart from other entrepreneurs.
Velocity (speed of execution) – In the early stages, speed is essential as startups must continuously adapt to market changes, seize new opportunities, and respond to customer feedback to maintain a competitive edge and drive growth. This mentality ensures that founders remain proactive—engaging with investors, communicating with users, and refining their products—rather than waiting for the perfect conditions.
Startups that can demonstrate velocity are more likely to gain traction with customers, partners, and stakeholders. Rapid progress indicates that the company can deliver value and scale quickly, which is critical for attracting more customers and maintaining momentum.
There are countless ways to showcase velocity. For instance, Antler recently invested in Capsa AI, a company automating due diligence in private equity. One of the most impressive aspects of co-founder Danyal Oezduezenciler is his swift response time to customers and focus on execution. He is available to his customers 24/7, no matter how small the request.
Investors actively seek founders who can execute with speed and momentum. High velocity demonstrates competence, drive, and the ability to turn ideas into tangible results. Startups that show rapid progress in customer acquisition, product development, or revenue growth are more likely to secure funding.
Hustler Mentality – A hustler mentality is essential for startups as it embodies the drive, resourcefulness, and resilience needed to navigate the intense challenges of building a company from the ground up.
Here are some reasons why this mindset is critical: Startups often lack the luxury of large budgets or established infrastructure. A hustler founder finds creative ways to solve problems with limited resources, whether it’s negotiating better deals, leveraging partnerships, or discovering low-cost methods to acquire customers.
Startups must quickly capture the attention of customers, investors, and partners. A hustler mentality helps founders cut through the noise by being persistent, seeking out alternative ways to connect with key individuals, and building relationships where others may see barriers.
Rejection is a common hurdle for startups, whether it comes from investors, customers, or potential partners. A hustler mentality enables founders to push forward despite setbacks, continually adapting and seeking the next opportunity.
Hustlers are driven by growth; they constantly think about how to scale, reach the next milestone, and penetrate new markets or customer segments. This relentless focus on growth is key to surviving and thriving in the competitive startup ecosystem.
Don’t give up!
These pillars—speed, resourcefulness, and insight—are crucial for any founder navigating the challenging yet rewarding fundraising landscape.
While fundraising can be particularly tough for underrepresented founders, it is certainly achievable. My best advice to diverse founders is to never give up. If you keep hustling and leverage the opportunities available to you, you will ultimately succeed.
Sarah Finegan is a VC at Antler, specialising in early-stage startups and venture capital. To know more about her, check out this exclusive conversation on TechTalks with TFN series, and subscribe to our YouTube channel.
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