5 Ways to Gain Investor Interest

The investment ecosystem in Pakistan has seen a decline over the years. By the end of 2024 and into 2025, the business landscape looked to be recovering. According to reports, “Pakistani startups raised USD 26.5M in Q4, 2024,” showing a “significant 76.7% increase compared to Q3, 2024.” 

However, on April 7th, the Pakistan Stock Exchange recorded its worst single-day crash in history, following the US President Donald Trump’s new trade policy that unveiled steep tariffs. Resulting in a volatile economic environment, the KSE-100 index dropped to an intraday low of 8,687 points (7.3%) and triggered a temporary halt in trading. Amid new developments and an unexpected pause on the tariffs for 90 days, Trump’s policies have further created market uncertainty that is expected to impact investor confidence. In such an unpredictable economic climate, here are 5 ways that can help startups establish credibility to secure investments. 

Clear Value Proposition

A well-researched and well-planned startup is crucial for gaining investors’ confidence and securing funding. Investors are interested in what makes your business unique and what value it brings to society. It is important to show a clear value proposition while pitching your startup to investors as it delineates the value it intends to provide. It is typically supported by a solid business model that demonstrates the entrepreneur’s strategy to generate revenue, scale, and grow the business in the long term. 

It is essential to catch the interest of an investor earlier, as explained by David Friedman, ex-CFO at Venti Technologies, “You should be able to describe your company in just a sentence or two, making sure to describe the value proposition and differentiation your company provides.

Select a Niche

When deciding to invest in a company, investors primarily show a keen interest in the business’s ability to solve a pressing problem that is not being addressed by other companies and present a distinct USP for the solution. Similarly, identifying a niche for your startup will enable you to present a focused approach and gain investors' interest in possible funding. Many startups make the mistake of identifying the right niche by overlooking competition, assuming their idea is entirely unique and different from the existing ones.

Overlooking your competition and not choosing the correct niche may lead to misleading and unrealistic projections and difficulty securing investments.

Brand Story

It is important to create a compelling narrative and master the art of storytelling to construct a strong business case that answers all investor questions and helps gain confidence.  In a Forbes article, Guy Kurlandski, the ex-Managing Partner of the Liquidity Group and Forbes Business Council member, identifies, “Be direct with your narrative, cutting straight to the chase with regard to traction and realistic expectations.”

Short-term losses are a part of launching a business; however, what concerns investors is the entrepreneur's understanding of financials and how they are working towards making their business profitable. All this only comes together with a strong narrative and building a convincing story.

Clear Financial Projections

Numbers and data are the best tools to defend your claims while pitching a startup. It is important to show your current standing even if it’s a test run, and show quantitative projections for the investor to better understand your business potential and the return on investment. A clear, well-drafted business plan with all the financial and non-financial details helps entrepreneurs gain investor confidence and, in turn, makes it easier to secure funding. 

“Focus on building a solid, data-driven pitch that highlights your market potential and traction. A compelling story backed by numbers makes all the difference in securing support.” - Saheer Nelliparamban, ZilMoney via Forbes Business Council

Understand What's Important To Your Investors

When pitching your startup to a potential investor, it is important to identify what business values or ethics attract the investor. It is crucial to identify the right investor who is looking to invest in your idea and niche. In Pakistan, there is a rising trend in startup investments that are tech-based, focused on e-commerce, or are aligned with sustainability and climate initiatives.  This trend highlights a growing interest from investors in technology and sustainability sectors.

A notable example is Farmdar, an agri-tech startup that raised a pre-series A round of $1.3 million, led by Silicon Valley’s Moment Venture. Farmdar addresses climate adaptability in agriculture, which is a key concern for investors prioritizing climate change.

Navigating in a volatile economy, securing funding requires more than just an idea. It needs a strong value proposition, realistic growth projections, and alignment with what interests the investor. As Pakistani startups secure more funding, particularly in fintech and e-commerce, the country’s entrepreneurial ecosystem is set to witness a significant transformation. To empower startups, Daftarkhwan provides an environment where they have the space to think and innovate with the freedom and support to materialize their ambitions.