Startup Investment - Practical Lens by Rupert Lane

In this piece, we’re sharing insights from January’s Lunch and Learn session “Startup Investment: Practical Lens” by Rupert Lane - Executive Director at Condor Growth Advisors. In his session, he sets out a practical view of startup investment, shaped by his experience working with early-stage companies across PropTech and Sustainability-led businesses, reflecting how startups are commonly assessed by investors, where things go wrong, and what consistently matters when raising capital. 

The session insights are summarised below. 

Why most startups fail 

90% of startups fail. Failure rarely comes from a single issue and is more often driven by a combination of factors. The most common are a lack of real market need, running out of funding, and having the wrong team in place. These issues are closely connected. If there is no genuine demand for a product, it becomes harder to raise money. If the team lacks the right mix of skills or capability, product development, sales - all suffer - which again leads back to funding constraints. 

Solving a real and valuable problem 

The starting point for any investable business is whether it is solving a real-world problem. Ideas that are interesting, but not useful in the real world, will struggle to find funding. Understanding the problem requires direct research and feedback from potential customers. It also requires clarity on who the problem affects, who benefits from the solution, quantifying the benefit and who actually controls the budget. 

A strong solution needs to demonstrate value in clear terms. This might be through cost savings, efficiency gains, time savings, convenience or improved access to data. Appetite matters as well. Even if a problem exists, resistance to change, internal politics or disruption to established ways of working can make adoption difficult. Budget ownership is equally important. The person who benefits from a solution is not always the person who pays for it. 

Measuring impact and explaining it clearly 

Being able to measure impact is critical. Investors need to understand what changes because a product exists and why that change matters. This requires clear definitions and simple explanations that work for non-experts. If the value cannot be explained clearly, it becomes difficult to justify investment, regardless of how strong the underlying technology may be. 

Competition, differentiation and market size 

Competition is inevitable. Very few ideas exist in isolation, and most startups operate in markets where alternatives already exist. The question is not whether competitors are present, but how a company differentiates itself. Differentiation may come from technology, speed to market, geographic focus or access to specific customers and data. 

Market size also matters. Small markets limit long-term growth, regardless of how strong a product may be. Investors look for opportunities where scale is possible, supported by clear and realistic definitions of the addressable market. 

Traction and business model credibility 

Speed to market and early traction can set companies apart. Running pilots, securing early customers and generating measurable outcomes help demonstrate progress. These signals reduce perceived risk. 

The business model matters just as much as the product. Only a minority of startups reach profitability. Validating how and when a business can become profitable is essential. Investors are increasingly focused on companies that can demonstrate a credible path to financial sustainability within a realistic timeframe. 

Teams, leadership, and culture 

Teams play a decisive role in investment decisions. Strong teams combine expertise with adaptability and practical aptitude. In early-stage companies, the ability to take ownership, learn quickly and work across disciplines is critical. 

Leadership sets the tone. Clear vision, consistency and passion matter, but so does sustainability. Teams and founders cannot operate at full sprint indefinitely. Founder wellbeing is a real risk factor, particularly in small companies where knowledge and leadership are concentrated. Team culture needs to support long-term performance, not just short-term delivery. 

Investment as a relationship 

Investment decisions are influenced by personal credibility and behaviour. Responsiveness, professionalism and clarity all shape how founders are perceived. Investment is not purely financial. Alignment matters. Investors need to understand the business, share the same long-term goals and ideally provide support beyond capital through experience, advice and networks. 

Different types of investors become relevant at different stages, from friends and family through to angels, family offices, venture capital and later-stage routes such as private equity or acquisition. Each comes with different expectations and forms of involvement. 

The wider UK investment environment 

The UK continues to be a strong environment for innovation, with significant investment activity across sectors such as AI, climate tech, and PropTech. Investment is not confined to London, with strong activity across multiple regional hubs. While standout success stories exist, they remain rare, reinforcing the need for realism, preparation, and resilience when building and funding a startup. 

Watch the full session above.