Not all startups scale like SaaS
Fundraising realities for non-AI-native startups
LinkedIn, Medium, and every VC podcast are flooded with the same founder advice – “build fast, ship quickly”, “focus on growth hacks”, and “nail your product-market fit.” But if you’re building a capital-intensive, infrastructure-heavy startup – whether in clean technology, advanced manufacturing, energy systems, or industrial hardware – this playbook doesn’t just miss the mark; it can actually mislead you. The truth is, your path to funding, growth, and success looks very different from the typical lean SaaS narrative, yet most pitch templates and investor expectations remain tailored to that model.
If your business doesn’t scale through code or move fast on cloud servers, here’s a guide to navigating investor conversations on your own terms.
Industries this applies to
Waste management (e.g. biowaste processing, automated sorting systems, landfill methane capture)
AgriTech (e.g. robotics, biological inputs, soil sensors)
CleanTech (e.g. recycling, water purification, renewable infrastructure)
Industrial IoT and Environmental Monitoring (e.g. smart waste bin sensors, landfill gas monitoring systems)
DeepTech and Hardware (e.g. robotics, sensors, drones)
Energy and Utilities (e.g. EV infrastructure, grid tech)
Circular Economy Ventures (e.g. textile reuse, construction material recovery)
Food Systems Innovation (e.g. upcycled products, sustainable packaging)
Why standard pitch advice falls short
“Build fast and iterate” doesn’t apply
You can’t rapidly MVP a drone delivery system or a bioenergy facility. Funders need to understand the real pace of innovation and deployment.Investor expectations don’t always align
Most VCs are trained to look for 100x returns in 5-7 years. That model clashes with businesses built for long-term infrastructure value and steady growth.Metrics are misunderstood
Daily active users and monthly recurring revenue aren’t relevant in many cases. Traction might mean a successful pilot, signed PPA, or certified technology approval.Timelines and risks are misjudged
These startups face complex regulatory paths, long procurement cycles, and intricate supply chains. Many investors underestimate the depth of due diligence required.Stereotyped as “not scalable”
Even large markets (e.g. waste, water, materials) get labeled as too niche or unscalable by software-first investors. The issue is often familiarity, not feasibility.Due diligence is deeper and slower
Tech validation, permit reviews, and hardware supply risk make diligence more involved. Founders should plan for a longer investor education cycle.
Fundraising tips that actually work
Target the right capital early
Focus on investors who understand your space: mission-aligned angels, deeptech VCs, project finance firms, family offices, and corporates with strategic interest. There are plenty – at Pitchwits, we can help you customise an investor list.
Break the vision into fundable milestones
Don’t ask for £10M up front. De-risk your vision by structuring the raise around pilots, phased deployments, or modular infrastructure.
Treat regulation as traction
Permits, certifications, and compliance achievements are valuable milestones. Highlight these as signs of de-risking and competitive moat-building.
Build strategic partnerships
Public sector partners, industry consortia, and enterprise clients can help validate and scale your model – often de-risking it for investors.
Show staged scalability
Investors want to know what’s scalable and when. Be explicit about timelines and unit economics at each stage of growth.
If your startup doesn’t fit the typical VC mold, that’s not a flaw – it’s a feature. Many of the world’s most transformative businesses are capital-heavy, infrastructure-dependent, and built for the long haul. The key is positioning your story for the right kind of capital – and the right kind of investor.
