How Tech Startups Can Win Over Investors: Alexey Bashkirov Shares Key Principles

In today’s volatile tech landscape, securing investor interest has become harder than ever. Startups are no longer judged just by how fast they can grow, but by whether they can grow smart. Alexey Bashkirov, private investor and founder of the Donum Foundation, brings a global perspective from his investments across Southeast Asia, India, and Europe. He explains what separates truly investable companies from the rest.

Why Most Tech Startups Fall Short

The startup failure rate is staggering—around 90%, according to Moneyzine. IT ventures, in particular, make up the bulk of these failures. And with global tech funding dropping 61% between 2021 and 2023 (CB Insights), the financial runway for most companies is shrinking fast.

But money isn’t the only issue. Many startups collapse under their own weight due to internal misalignment, inefficient marketing, and flawed business models. One of the most common pitfalls is solving problems that aren’t significant enough. Bashkirov notes that 42% of startups fail because they never define a truly valuable problem. Instead of addressing large-scale needs, they cater to trends or superficial user feedback.

As an example, Uber didn’t succeed because people wanted to hail rides through an app—it succeeded because it solved a real problem: accessible, flexible transportation. That’s the kind of clarity investors are looking for.

Growth Isn’t Everything

Startups often over-prioritize rapid growth without building a path to long-term sustainability. The transition from scale to profitability—what Bashkirov refers to as the “extrapolation” phase—is where many lose their footing.

SoundCloud is a good case in point. Between 2012 and 2013, its user base skyrocketed from 10 to 150 million. But while revenue rose 50%, expenses jumped 75%, hitting €28.5 million. The platform never developed a profitable monetization model, despite its user volume. That failure to convert traction into sustainable growth is exactly what investors want to avoid.

Successful founders adapt. Sometimes that means restructuring teams, rethinking culture, or even pivoting the entire business model. Bashkirov emphasizes that a pivot isn’t a sign of weakness—it’s a sign of strategic maturity.

The Investor’s Checklist

When evaluating startups, Bashkirov and his team focus on the fundamentals. Out of nine tech investments he’s made internationally, the results were mixed: one failure, two underperformers, two major wins (in FinTech and EdTech), and four solid performers. So what separates the winners?

The most important indicators fall under unit economics. These metrics help investors assess whether a company can grow sustainably. Here’s what they look at:

• LTV (Lifetime Value): Total revenue expected from a customer over their lifetime
• CAC (Customer Acquisition Cost): How much it costs to acquire a single customer
• Payback Period: Time needed to recoup CAC through customer spending

These numbers aren’t just viewed in aggregate. Investors conduct cohort analysis—tracking customer behavior over time—to see if trends hold or deteriorate as the business scales.

The Hidden Challenges in Startup Math

Unit economics tell you whether the model can scale. Many companies rely on external capital for growth, but the real challenge is shifting to self-funded expansion.

Take Uber again: if CAC exceeds LTV in certain cities, the company adjusts its strategy to restore profitability. Ideally, a healthy company maintains an LTV that’s at least 4–5x higher than CAC. But there’s a catch—if the payback period is too long, it may signal that the business requires excessive capital to grow.

Bashkirov Alexey cites an EdTech startup that had a payback period under one year, allowing it to reinvest revenue into user acquisition without relying on outside funding. That’s the kind of efficiency investors notice.

When Growth Masks Deeper Issues

Cohort analysis often reveals warning signs that top-line numbers can’t. In one EdTech investment, Bashkirov observed rising CACs with flat LTVs in newer customer cohorts—a clear signal of market saturation. The company had to rethink its entire acquisition strategy to stay competitive.

What Makes a Startup Investable Today

In a climate where capital is harder to secure, startups must do more than show potential. They need to prove that they understand their market, solve real problems, and have a clear, data-backed path to profitability.

As Alexey Bashkirov puts it, “It’s not about growing fast—it’s about growing right.” The companies that thrive are those that can scale without burning through endless capital. For today’s investors, long-term resilience matters far more than short-term hype.