What’s functionality, futurism, and faith got to do with raising funds? They’re part of a four-part recipe that’s been attracting Unicorn hunters for decades.

The story investors want to hear is one of repeatable success rooted in technical precision. In this industry, that means a product fundamentally changes the economics of underwriting, risk selection, or claims. The volatility we’re seeing in markets is forcing VCs to be more conservative, so what they want now are companies that play well with others.

A Four-Square Foundation

The term four-square comes from construction, and I use it to signify that investors are not just looking at your code or your ideas, they’re looking for a solid structure that they can build on. They know that the future isn’t a platform in isolation. It’s an ecosystem of APIs, machine learning models, and decision tools that combine to create compound value. If you’re building in InsurTech, show how you can be a core utility in that stack. You have to show up with a structure built to grow and withstand the unexpected.

An Acronym and a Challenge

Don’t wait to explain your exit strategy. VCs aren’t just betting on your solution—they need to see your judgment of the landscape. Prove you understand not just how to build, but how they will make their money back and then some. But show them why they will keep believing in you.

Let’s start with the first component: Functionality. Your product should work ‘out of the box’ and not require a host of point solutions to get started. But it also needs to be better than all those point solutions combined. Pitch functional originality that can be demonstrated on the spot. If AI can build it — or your investor can — they will. If that means you have to partner with another startup to make your idea a simple solution for your target audience, so be it. Next, futurism. That’s not just looking forward — it means an orientation toward solutions and ideals that can be implemented now and scaled for the future. Investors want to see that you’ve considered long-term rewards and how your audience might grow or decline over time. There’s another F-word after functionality: Frugality. Everyone says they want funds to hire the best people and build great tech, but really, you need to show that you’ll hire the very best people and build tech that no one has thought of yet. Impossible? Not really. You can do this by coming to the table with a lean team of founders and early employees who excel in multiple areas. Then — show how you’re putting your money toward highly skilled people who can build products on their own. Frugality isn’t about being cheap; it’s about sacrificing fun things to invest in people, research, and development — the catalysts for growth. The last component is faith. Not a “I hope so,” belief, but the knowing that comes from a deep understanding of the marketplace, your business, and your audience. You have faith in your product because you’ve created something extraordinary. Investors react to confidence when it is rooted in reality. It is your faith, proven by your data, products, and lean business model, that will convince them to see your ask as an opportunity and not a gamble.