If you’re a founder gearing up to raise funds, there’s one key thing that can drastically increase your chances of success: understanding an investor’s investment thesis.
It might sound like financial jargon, but it’s actually one of the most practical concepts in early-stage fundraising. And yet, many founders overlook it — which often leads to mismatched pitches, ignored emails, and missed opportunities.
So, what exactly is an investment thesis, and how can it shape your approach?
What Is an Investment Thesis?
An investment thesis is a set of conditions or preferences that guide an investor’s decisions. It’s essentially their strategy , a framework they use to determine which companies are worth backing and why they believe those companies will generate a return.
Think of it as a filter. If your startup doesn’t align with their investment thesis, you’re probably not going to get a meeting, let alone a check no matter how great your pitch deck looks.
Common Elements of an Investment Thesis
Here are a few key elements investors use to shape their thesis:
1. Geography
Many investors focus on specific regions. Some only invest in African startups. Others may concentrate on Europe, the UK, the US, or emerging markets.
If your startup operates in Lagos and you’re pitching to a US-only fund, you’re already out of scope.
2. Check Size
The amount an investor is willing to invest also varies widely. Some write small checks ($50k–$100k), while others only deploy large sums (like $5M+).
Pitching to an investor who only participates in $10M rounds when you’re raising $200k won’t move the needle.
3. Stage Focus
Some investors focus exclusively on early-stage (pre-seed, seed), while others only invest in growth rounds (Series A, Series B+).
You need to know where your startup fits in their stage preference.
4. Industry or Sector
Certain funds are industry-agnostic, meaning they invest across all verticals. But others are very specific: fintech, edtech, climate tech, healthtech, or more recently, AI and Web3.
Sending your edtech pitch to a climate-focused fund? Not likely to work.
Why This Matters So Much
Understanding an investor’s thesis allows you to:
- Target smarter: You won’t waste time pitching to funds that will never say yes.
- Tailor your pitch: When you know what matters to an investor, you can align your story and metrics with their focus.
- Build credibility: It shows that you’ve done your homework, which immediately sets you apart from most founders.
What Happens When You Don’t Know It
Founders who skip this step often find themselves:
- Getting ignored by investors who are simply not a fit
- Burning through warm intros with the wrong people
- Feeling like no one wants to fund them when in reality, they just need to pitch smarter
Fundraising is hard enough. Don’t make it harder by approaching the wrong investors.
How to Find an Investor’s Thesis
Most professional investors and VCs share their thesis publicly. Check:
- Their firm’s website
- Partner bios
- Recent investments (look at the size, sector, and geography)
- Halisi Consults Investor Hit list
- Platforms like Crunchbase, PitchBook, or their LinkedIn posts
Final Thoughts
An investment thesis is not just a preference it’s a dealbreaker.
If your startup doesn’t align with it, the conversation ends before it starts. But when you take the time to understand and respect that thesis, you open doors. The right investor is out there; you just need to find the one whose strategy fits your vision.
And if you’re not sure where to start?
At Halisi Consults, we help founders develop a solid investor readiness strategy including targeting the right investors, preparing you for due diligence, refining your business plan, and building a compelling pitch. Let us help ypu approach investors and secure funding confidently.