Green Flags in Early-Stage Pitches (And Why They Matter)
A while back, I wrote about the red flags I watch for in early-stage pitches. But just as important are the green flags — the signals that make me lean in, ask more questions, and want to learn more about a company.
These aren’t magic formulas for getting an investment, but they’re patterns I’ve noticed from the most compelling pitches I’ve seen.
1. Deep Understanding of the Problem
The best founders don’t just know their product — they understand the problem it solves inside and out.
They can clearly explain:
Who experiences the problem
How they solve it today
Why that solution is lacking
Why the timing is right for change
When a founder can do that without hand-waving or over-generalizing, it tells me they’ve spent time talking to real customers, not just brainstorming in a vacuum.
2. A Clear and Credible First Step
I like big visions, but I want to see how you’re starting small and proving it out. The most convincing pitches show:
A defined early customer segment
A realistic go-to-market plan
A clear next milestone that meaningfully reduces risk
It’s not about boiling the ocean — it’s about knowing where to put the first drop.
3. Honest Awareness of Risks
It’s counterintuitive, but I trust founders more when they openly acknowledge what could go wrong.
When someone says, “Here are the three biggest risks to our plan, and here’s how we’re thinking about them,” it shows self-awareness, credibility, and an ability to think like an operator.
4. Strong Team-Market Fit
The team’s background, skills, and networks should line up with what the business needs at this stage. That doesn’t mean the founders have to know everything — but they should know enough to execute the next stage and to identify the gaps they still need to fill.
5. Traction That Matches the Stage
At the earliest stages, “traction” doesn’t always mean revenue. It might mean:
A pilot agreement
A signed LOI
Regulatory clearance for an early step
Scientific validation from a third party
What matters is that the traction is relevant and hard to fake.
6. Crisp, No-Buzzword Communication
You can usually tell when a founder really knows their stuff — they can explain it clearly to anyone without overcomplicating it or hiding behind jargon.
If I can understand the core business in plain language, I’m more confident they can explain it to customers, partners, and future investors too.
Final Thought
Green flags don’t guarantee an investment, but they do make it easier to imagine the company as part of a portfolio. They signal a founder who understands both the opportunity and the execution challenges ahead.
If you can combine these signals with a compelling story, you’re already ahead of most pitches we see.
