How Should You Tell Investors About Your Startup’s Problems?

brett fox
5 min readApr 16, 2024

If there’s one thing I can guarantee you of, it’s that investors will find out about all your company’s problems before they fund your startup. So, get the idea that you can hide your problems from potential investors.

Picture: Depositphotos

Instead, I’m going to teach you how you can use the problems your company has to your advantage to close your funding. In fact, I’ll show you how you can do this in one slide.

There are four reasons why you should explain your problems to investors. Let’s start with…

Investors going to find about your startup’s problems.

Let me start with a story. When I was raising our initial funding, several investors passed on investing in us because they had found in their diligence process that I was difficult to work with. It didn’t matter whether it was true or not, the story was out there, and it scared some investors away.

The more important point is that investors are going to find whatever issues there are with your company. So, whatever the issue is, investors are going to find it.

As I found out the hard way with my own issues, investors are going to find all the issues that pertain to your company. This leads directly to the next point on the list…



brett fox

I work with startup CEOs to help them grow their businesses . I built several businesses from $0 to >$100M. Learn more at