Video narration
Why would anyone invest in a startup with no sales? Like backing an unfinished project, you need a convincing plan and proof. That proof can be a real problem, interested customers, early product progress, or a team able to deliver; what counts depends on the startup. Founders find suitable investors, pitch the opportunity, and explain what funding will help them achieve. Investors check the claims and can decline. If they proceed, they agree terms, sign documents, and send the money. Investors aren't buying sales that don't exist. They're betting the team can turn credible evidence into future value. In exchange, investors get equity-ownership-or a claim to ownership later. That means dilution: founders' share gets smaller, though the impact depends on the deal. The money buys time to reach milestones, not a guarantee of success. Because they're backing credible evidence of a team's potential, not existing sales.