A marathon: the reality of starting a marine startup (and how to do it)
As the global startup scene shifts into 2025, Gabbi Richardson (founder of Yachting Ventures) highlights what marine investors are looking for, and sets out financial planning, raising capital and exactly what each funding round means.
The global startup scene in 2024 has shifted from the rapid growth we saw in recent years to a more cautious approach. The flurry of investment in tech startups that dominated during the pandemic boom has slowed down significantly. In fact, in the third quarter of 2024, global VC investment in tech startups dropped by 21 per cent compared to the same time last year. This drop reflects wider economic factors, market uncertainty, and investors being more cautious.
For early-stage startups, especially those in the pre-seed or seed stages, things have gotten tougher and more competitive. Investors are being pickier, carefully evaluating both the potential of business ideas and the strength of founding teams.
Startups that can show product/market-fit early, even in its simplest form, are in a better position to get noticed.
Being able to demonstrate real progress and demand (like customers, revenue, or user engagement), can greatly improve a startup’s chances of securing early-stage funding in this environment.
For later-stage startups (those in Series A and beyond), investors are more insistent on the path to profitability and there is less appetite for startups that aren’t showing signs of sustainable growth. On top of that, startup valuations are becoming more grounded and realistic. The inflated valuations we saw in recent years are being replaced with a more cautious, fundamentals-based approach.
AI catches the eye of startup investors
Startups that are using AI are catching the eye of investors, and this trend is expected to keep growing as AI becomes more integrated into daily life. At the same time, ClimateTech startups are seeing a rise in interest, driven by increasing environmental concerns and regulatory changes.
But when it comes to success, having an innovative product or disruptive technology isn’t everything.
In fact, the quality, vision, and adaptability of the founding team often matter more in determining a startup’s future. Investors understand that a great idea is only as good as the team behind it and they look for signs of strong leadership, industry knowledge, complementary skills, and the ability to bring the company’s vision to life.
Startups with visionary, flexible, and committed founders are much more likely to achieve lasting success, no matter what product they’re working on.
How to start a startup
Financial planning for marine startups
Financial planning should be a top priority from the start, as poor financial management is one of the main reasons startups fail. You need to clearly understand how much capital it will take to bring your business and vision to life. The first step is estimating how much money your startup will need upfront. This includes not just product development costs but also operational expenses like marketing, salaries, office space (if necessary), and any key software or tools. Once you have a rough idea of these expenses, you can put together a 12-18 month cash flow forecast.
For many startups, the initial funding comes from bootstrapping (personal savings). But depending on how big your idea is, you might need outside funding. If that’s the case, consider raising initial pre-seed or seed capital from friends, family, or angel investors. These early-stage investors usually want to see that you’ve invested your own money, time, or resources into the venture as this shows them you’re committed and reduces their risk.
As your startup grows and shows signs of traction, you might start looking for larger funding rounds. At this point, you’ll have access to a wider range of investors, including VC firms, corporate investors, and even debt financing. Each funding option has its own pros and cons, so it’s important to carefully consider the terms and what’s best for your business. For example, VCs will expect high-growth, corporate investors offer strategic benefits (such as industry expertise or access to distribution channels) and debt financing lets you keep full ownership of your company but requires you to repay the loan with interest.
Raising capital for marine startups
Raising capital for a startup is often seen as a quick race to secure funding, but in reality, it’s more like a marathon that requires patience, persistence, and careful planning.
A typical fundraising round can take anywhere from six to twelve months, but more complex deals – especially those involving VC or corporate funding – can take even longer. Investors need time for due diligence, internal approvals, and legal processes. That’s why it’s important to start the fundraising process well before you actually need the money.
Successful fundraising isn’t just about securing the funds; it’s about building strong relationships with investors because trust and credibility are key.
Well versed founders begin networking with potential investors months ahead of when they plan to raise funds.
This gives them the chance to show progress and start building rapport, making it easier to secure funding when the time comes.
Resilience in startup fundraising
Fundraising is a tough mental and emotional journey. Pitching to investors, following-up, and dealing with inevitable rejections can take a serious toll. It’s also a full-time job that often takes focus away from running the business, which can affect a startup’s performance. Even after securing funding, the challenges don’t stop. Founders have to manage investor expectations, provide regular updates on milestones, and plan for future rounds of funding.
To handle the emotional ups and downs of fundraising, founders should try breaking the process down into smaller, manageable tasks, like aiming for five investor pitches per week. It’s also helpful to lean on experienced entrepreneurs and mentors for advice and support. Connecting with other founders going through the same struggles can be a great way to share experiences and strategies.
Lastly, founders should embrace failure and see rejections as chances to learn and grow. Be open to adjusting your pitch or business model based on investor feedback and conversations.
Read about the growing legacy of marine startups and investment and how can firms benefit.
How to seek funding as a startup
Start by creating a pitch deck that clearly outlines the key parts of your business, like the problem you’re solving, the market opportunity, and your business model. Investors are very focused on numbers, so being able to confidently discuss your financials is crucial. If numbers aren’t your strong suit, consider working with a part-time CFO to ensure you’re prepared to answer any detailed questions with confidence.
Not all investors are the right fit for your product, stage, or location, so be strategic about who you approach. Do your research and target investors who have a track record of supporting startups similar to yours. For example, if an investor only funds hardware startups at Series A, don’t waste your time pitching them your pre-seed software idea. Warm introductions through mutual connections are far more effective than cold outreach, so leverage your network to get in front of the right people.
Start building relationships with potential investors well before you need to raise funds, ideally six to twelve months in advance. Investors are more likely to engage with founders they trust and have been following over time. Keep them updated with your progress and share periodic updates to build a narrative of consistent growth.
Be careful not to overstate your market size or growth potential, as doing so can raise red flags. If your total addressable market (TAM) seems exaggerated, investors will question your credibility. Always back up your data with reliable sources and show how you came to your projections. Promising unrealistic outcomes, like hitting $10M in revenue within a year without evidence to support it, will hurt your trustworthiness. Investors value honesty and realistic growth targets.
Read about the new startup day taking place at boot Düsseldorf 2025.
Advice and guidance for marine startups
Joining communities that focus on your specific niche, like Yachting Ventures, can be incredibly helpful. These communities provide valuable resources to help you succeed in fundraising, such as pitch training, deck development, and strategies for reaching out to investors.
They also offer direct access to investors through pitch competitions and networking events, which can increase your visibility and open up more opportunities. Being part of a respected community also boosts your credibility with investors. For example, at Yachting Ventures we recently introduced our Badge of Credibility, a symbol of trust that investors recognise, showing that your startup is serious and ready for success.
Communities like Yachting Ventures also give you the chance to connect with mentors, advisors and other founders who have faced the same fundraising challenges. These peer relationships are invaluable because other entrepreneurs truly understand the struggles you’re going through. They can help you sharpen your pitch, refine your fundraising strategy, and give advice on how to manage the emotional rollercoaster of raising capital. These relationships may lead to recommendations and introductions to investors.
Understanding startup funding rounds
Startup funding typically happens in different rounds, each with its own goals, types of investors, and expected outcomes.
Pre-Seed
Round Size: £50,000-£250,000
Sources: Friends & family, angel investors, early-stage VC firms
Objectives: Validate the idea, develop a basic MVP (minimum viable product), and do some initial market testing.
Pre-seed funding is usually the riskiest stage for investors. At this point, the startup may only have an idea, a small team, and an early version of its product. Investors in this round are often driven by the founders’ vision and the long-term potential of the business.
Seed
Round Size: £250,000-£2 million
Sources: Angel investors, early-stage VC firms
Objectives: Finalise MVP development, launch, gain early customers/users, build traction, collect data to refine the product, and ramp up marketing and sales efforts
The seed round is critical for startups as it provides the funds needed to turn an MVP into a fully functioning product or service. Investors at this stage are looking for proof of market validation—things like user engagement, early revenue, and positive customer feedback.
Series A
Round Size: £2 – £15 million
Sources: VC firms, corporate investors
Objectives: Scale product development, marketing, and operations, grow the customer base, and hire key internal team members
The Series A round marks a big turning point for startups. At this stage, the company isn’t just proving its idea — it’s showing it can grow. Investors are paying close attention to key metrics like revenue growth, customer retention, and operational efficiency.
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