The Fashion Tech Fundraising Playbook: Lessons from a VC Insider
Welcome back, fashion tech enthusiasts!
This article accompanies our podcast ‘VC Series’, 4 episodes in conversation with Rohan Bansal on the venture capital space. Continuing on this episode part 3, Rohan shares what makes a fashion tech pitch deck stand out, highlighting the power of storytelling, founder credibility, and realistic market sizing. With only 1% of decks securing funding, he emphasizes the importance of addressing key investor questions like "Why now?" and "Why you?" to rise above the noise. Rohan spent 5 years in Paris as an investor in the growth space, which means that he has seen many pitch decks. He revealed critical insights about what makes a compelling investor pitch.
Listen to the full conversation:
The Harsh Reality of Fundraising in Fashion Tech
In today's competitive venture capital landscape, fashion tech founders face an uphill battle to secure funding. The stark reality is that investors spend an average of just 3 minutes and 20 seconds reviewing a pitch deck, and only about one percent of decks actually result in funding. This makes effective storytelling not just important, but essential for startup success.
“In a world where attention spans are short and competition is fierce, your story is your sharpest edge.” — Rohan
Why Storytelling is a Startup’s Secret Weapon
According to Rohan, humans fundamentally understand stories better than anything else. When a founder can effectively link their product or company to a personal narrative or origin story, it demonstrates a deep understanding of the problem they're trying to solve. This storytelling element isn't just window dressing—it's a crucial component that helps investors remember your pitch among the dozens they see weekly. As Rohan puts it, "The one that has a clear story is the one that's still in your brain," which ultimately leads to more due diligence and increased chances of investment.
One study noted that VCs reject approximately 100 ideas for every one they invest in, as stated on Time.
What Investors Look for in Early-Stage Fashion Tech Startups
When it comes to fashion tech specifically, traction metrics vary depending on the stage of the startup. For early-stage companies that might lack significant traction, investors focus heavily on the founder's experience and relevance to the problem they're addressing. Can they scale? Can they wear multiple hats, functioning as R&D, sales, marketing, and product development simultaneously? This is particularly crucial in fashion tech, an industry notorious for its opaque nature and high barriers to entry. Founders without industry experience often face skepticism from investors who understand that fashion operates differently from other sectors.
Another study found in TechCrunch, that in successful decks, the company purpose slide captured 22 s of attention—compared to 61 s spent on the opening product slide of unsuccessful ones
Market Sizing: Avoiding Common Pitfalls
One of the most commonly mishandled aspects of a pitch is market sizing — but as Rohan advises, taking a bottom-up approach can make all the difference.
Start with your pricing model.
Identify the number of potential clients or users in your target geography.
Apply appropriate discounts for factors like incumbent market share.
Investor expectations:
They often assume the actual addressable market is only one-third to one-half of what's claimed in pitch decks.
Be optimistic but realistic with your market size figures to build credibility.
Red Flags That Instantly Undermine Your Pitch
Red flags that investors immediately notice include co-founders with too-similar backgrounds (lacking complementary skills), irrelevant industry experience, unrealistic growth projections, inappropriate funding requests (too high or too low for stated goals), and overly ambitious timelines to reach unicorn status. While visual design matters—a disorganized deck often reflects disorganized thinking—substance ultimately trumps style. As Rohan noted, some of today's most successful companies had unimpressive early decks but compelling stories and visions. AirBnB is a classic example.
Final Tips: What Fashion Tech Founders Must Nail in Their Decks
Fashion tech founders should clearly convey their market understanding, relevant experience, and why now is the ideal time, citing factors like regulatory support or market trends. Demonstrating traction and a clear exit vision signals maturity and aligns with what venture capitalists look for. Ultimately, founders must convincingly answer “Why now?” and “Why you?” especially if they’re entering fashion from another industry.
Fashinza, a fashion supply chain and product development platform, has raised approximately $155M to date. Have a look at their investment deck to see how it got them to be successful at raising.
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