How to De-Risk Your Company and Look As Investable As Possible

99% of the investors we know and have engaged with will evaluate 2 main things in the first 10 minutes of meeting a potential company to invest in:

How big is the upside?
How likely am I to lose money?

The first question is obvious - and is what makes up 60-80% of typical pitch decks from teams looking to raise.

But the second question often goes overlooked more than it should.

Here are (in our opinion) 4 levers that de-risk your company to investment groups and make you look as attractive as possible for capital:

1. Story Risk - Why Should This Exist Now?

Investors will want to back something that feels inevitable.

• Build a now-or-never narrative: show the market shift that makes your timing inevitable.

• Make your background feel like destiny, not coincidence.

  • “How did you know this problem existed?” Do you have direct experience in feeling the problem you solve?”

• Borrow credibility: early partners, advisors, or operator angels collapse perceived risk.

2. Structural Risk - Are You Ready to Take Capital?

Fundable companies look squeaky clean under the hood.

• Incorporation, IP, and equity agreements must be airtight.

• Data room should show governance, not chaos: cap table, use of proceeds, basic diligence docs.

• Clarity on how capital turns into milestones, not just runway.

  • The amount of decks I have seen that do not include what the ask even is, or what the proceeds are going to is baffling. Clarity is king.

3. Signal Risk - Who Else Believes in You?

Investors move in packs. They look for social proof.

• Strategic angels, pilots, or LOIs matter more than perfect traction.

• Third-party validation - accelerators, awards, or government programs - builds credibility faster than adjectives.

• The most recent example you’re seeing in this is AI

  • There is a disruption in basically every single industry with the implementation of AI to replace ____

4. System Risk - Can You Acquire Customers Predictably?

Even early companies can show commercial motion if it is packaged correctly.

• Know your funnel: who you sell to, how you reach them, and basic conversion math.

• Show a process that scales with capital.

• The easier you can show that you have a system that predictably acquires customers, the more confidence investment groups will have in your backing

• This is by FAR, the most under-talked about risk factor not enough companies have a focus on

  • Showing predictability in GTM / acquisition = confidence

De-risking your company to potential investors doesn’t always mean having massive ARR. There are other things you can do to show this.

The 4 examples I just mentioned are all a great place to start, and will put you ahead of 90% of companies that you’re competing with.

Hope this was valuable to you.

Have a great weekend.

Ryan Bryden
Breakout Capital Group