What Investors Really Think About Your Pitch (And Won’t Say Out Loud)
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Raising capital might be one of the hardest things you'll ever do as an entrepreneur. I learned that the hard way.
Years ago, I pitched a VC I respected deeply… and he turned me down. That VC was Andy Whitman, Managing Partner at Loft Growth Partners. And in today’s episode, we revisit that moment, unpack the lessons, and explore what every founder should know before they step into an investor pitch.
The Hard Truth: Most Founders Overvalue Their Business
Andy didn’t sugarcoat it. Most founders—myself included at the time—come in asking for too much money, too soon, at too high a valuation.
“You were at a $5M run rate and looking to raise $5M. That’s too much too early,” Andy told me.
The lesson: capital can be a blessing or a curse. If you raise too much too early, you make expensive mistakes. With limited funds, you’re forced to be disciplined—and that’s a good thing.
What Investors Are Actually Looking For
If you’re an emerging CPG brand trying to raise capital, here’s what matters most:
A differentiated product in a large and growing category.
Proof you’re doing well, whether that’s sell-through data, gross margins, or early traction.
Momentum and upside—why this is just the beginning.
The right team—why you are the one to pull it off.
A path to real returns—what’s in it for the investor?
Sounds simple, right? But many pitches miss the mark by being too fluffy (all sizzle, no steak) or overly tactical (all steak, no story).
Andy also emphasized the importance of your “money chart”—that one slide that proves your business is outperforming competitors, whether through velocity, margins, or repeat rates.
Timing is Everything: Raise Before You Need To
One of the most powerful takeaways? Build investor relationships before you’re actively raising. Fundraising is distracting and emotionally exhausting—trying to do it under pressure makes it worse.
“The best time to talk to an investor is when you don’t need their money,” Andy said.
The Mistakes Founders Make (and How to Avoid Them)
From overcomplicating NDAs to cold-pitching the wrong funds, there are a few consistent errors founders make. Here’s how to avoid them:
Do your homework. Know what kind of companies a fund invests in—stage, category, check size.
Don’t chase unicorn comps. Burt’s Bees, RXBAR, and Siete are the exceptions, not the rule.
Be honest about your core. Spreading yourself across multiple categories may look ambitious, but it often signals a lack of focus.
In fact, Andy’s most enduring advice came from a former boss at Kraft:
“We can do anything, but we can’t do everything.”
Why Andy Turned Me Down (and Why I’m Grateful)
Ultimately, Andy passed on investing in my business. He didn’t see enough margin, too many SKUs, and a valuation he couldn’t support. At the time, I was disappointed. In hindsight, I’m grateful.
Because the experience taught me that who you build with matters more than what you’re building. And that staying laser-focused on your core offering is the fastest way to build a sustainable, scalable business.
Want more founder conversations like this one? Subscribe to the podcast or check out Loft Growth Partners for more insights from Andy and his team.
About Andy Whitman
Andy Whitman
Managing Partner, Loft Growth Partners
For the last 20 years, Andy has devoted his uncanny acumen for what it takes to build successful brands, his unwavering focus on the fundamentals, and his unparalleled network to help dozens of entrepreneurs rapidly build profitable companies—while informally mentoring hundreds more.
His polite but direct, tell-it-like-it-is style delivers immeasurable value to entrepreneurs by demystifying investing, helping them see around corners, become better leaders, and grow businesses that are built to last.
During his successful career with General Foods and Kraft Foods, Andy developed deep expertise in marketing, sales, operations, and finance. It was during this time that he discovered his passion for nurturing smaller businesses to achieve rapid growth—and he's been investing in and helping operate small consumer product companies ever since. Andy has been a key part of the emerging branded consumer products ecosystem since founding 2x Consumer Products Growth Partners in 2001.
What sets Andy apart is his passion for entrepreneurs and his commitment to helping them succeed. Named by Forbes as one of the “25 Most Influential Kingmakers in Consumer and Retailer Companies,” Andy has shared his insights in more educational webinars, workshops, and panels than just about anyone in the industry.
As a single dad by choice via surrogacy, Andy is deeply committed to building a better world for his (not so) little girl—and still finds time to cheer on his Wisconsin Badgers and reminisce about the summer he spent traveling (for work!) with the legendary Jimmy Buffett.
