By Julia Sabitova

If you’re the CEO of Lovable or Higgsfeld and reached $100 million in ARR in under a year, this article isn’t for you — enjoy being a unicorn as thousands of investors beg to fund you. You’ve clearly cracked the code for hyper-growth and are navigating a different stratosphere of venture capital.

But if you’re not, then let’s be honest: raising in 2026 is tougher than ever before. While global venture funding figures might suggest a rebound or continued growth, the reality on the ground for the average startup founder is far more challenging. The overall pie might be expanding, but access to it is becoming increasingly concentrated. According to Crunchbase data, more than a third of global funding in 2025 went to just 629 companies, a stark increase from 24% of funding in 2024. This trend signals a widening chasm between the elite few who attract the lion’s share of capital and the vast majority of promising early-stage startups struggling to secure their initial rounds. This growing concentration of capital effectively renders much of that funding inaccessible to the vast majority of founders, particularly those without pre-existing networks or proven unicorn potential. So, what can founders do to bridge this gap and make their companies stand out in a fiercely competitive environment?

The fundamental challenge often boils down to a single, age-old concept: trust. We don’t invite strangers into our houses, and we certainly don’t hire them for important jobs, let alone entrust them with significant capital. For thousands of years, trust and credibility have been the most important factors in forming relationships, both business and personal. In the high-stakes world of venture capital, where the risks are immense and the returns potentially astronomical, trust is the bedrock upon which investment decisions are made. Investors aren’t just looking at numbers; they’re looking at the people behind the numbers, seeking reassurance that their capital is in capable, trustworthy hands.

Consider the phenomenon of Silicon Valley. In 2025, companies within this tech hub attracted nearly 50% of the entire U.S. venture funding. Silicon Valley is also home to 312 unicorns, over half of all U.S.-based unicorns. This isn’t primarily because San Francisco Bay Area founders are inherently smarter or possess a secret formula for innovation that eludes others. It’s largely about their unparalleled proximity to capital and established networks. When you’re in constant proximity to the world’s leading technology companies like the "MAG7" (Microsoft, Apple, Google, Meta, Amazon, Netflix, NVIDIA) and hundreds of active venture capitalists, connections happen organically. These interactions occur through social gatherings, industry meetups, shared alumni networks, and most critically, referrals. This constant exposure and repeated interaction are precisely how credibility is formed: through connections, visibility, and the gradual building of a reputable presence. These informal yet powerful networks foster a sense of familiarity and trust that is incredibly difficult to replicate from afar.

So, is simply networking the secret to raising capital? Partially, yes, but it doesn’t scale efficiently. You can’t realistically meet the entire industry and invite every potential investor to a one-on-one meeting. The answer lies in a more strategic approach: you have to proactively build your reputation at scale. Reputation, in essence, is trust made visible and verifiable. It’s the cumulative perception of your character, competence, and reliability within your industry and beyond. Here are my top four pieces of advice on how to build it right and attract the capital you need.

Be Visible: Master Your Narrative and Amplify Milestones

The first and arguably most crucial step is to make your growth and achievements undeniably visible. Whenever your company reaches a significant milestone — whether it’s successfully closing a funding round, hitting an impressive user target, achieving substantial revenue growth, or launching a groundbreaking product — the market, and especially potential investors, should hear about it loud and clear.

We’ve seen countless companies achieve monumental targets only to fail spectacularly at spreading the word effectively. They might post a brief update on their company blog or social media, but without a strategic communications plan, these achievements often get lost in the noise. To truly make an impact, you must proactively plan all media coverage in advance. This means identifying target publications, crafting compelling press releases, preparing exclusive news angles, and having an extensive media relations strategy.

Crucially, cultivate meaningful connections with journalists who cover your particular niche. Global media outlets, much like venture capital firms, operate heavily on relationships. Journalists are constantly seeking exclusive stories that resonate with their audience. If you disseminate your news broadly on social media before engaging with them, pitching to journalists becomes significantly harder. Everyone wants an exclusive, and no one wants to write about old news. A well-executed media strategy ensures your narrative is professionally presented, reaches the right audience, and garners the attention it deserves, signaling momentum and validation to the investor community.

Focus on Customers: Validate Your Vision with Market Traction

The second priority when aiming to raise funds is to solidify your company’s undeniable place in the overall market landscape. This means being where your customers are, understanding their needs, and proving your ability to serve them effectively. Many founders make the fundamental mistake of chasing investors instead of diligently focusing on acquiring and retaining customers.

Remember that sophisticated investors will always find genuinely good investment opportunities. Your primary job as a founder is to make sure that your company is one of those opportunities. Investors need to see compelling evidence that your company has a sustainable, scalable customer acquisition approach and is able to continuously grow its user base, demonstrating clear product-market fit. This means showcasing robust metrics like customer acquisition cost (CAC), lifetime value (LTV), retention rates, and organic growth channels. Strong customer testimonials, case studies, and positive market feedback are invaluable.

Conversely, aggressively chasing investors can sometimes even damage your public perception and funding prospects. If venture capitalists observe you spending heavily on investor relations events, PR solely focused on fundraising, or constantly seeking introductions, rather than demonstrating a relentless focus on customer growth and product development, it may signal misaligned priorities. It can suggest that you’re more concerned with securing capital than with building a fundamentally sound business that generates real value for its users. The best way to attract investors is to build a company that doesn’t desperately need them, but rather presents an irresistible opportunity.

Be a Thought Leader: Establish Authority and Expertise

Important thing No. 3: cultivate thought leadership. You have to prove your credibility not just through your product and metrics, but also through actively participating in and shaping industry conversations. This involves establishing yourself and your company as authoritative voices in your specific domain.

Speaking at industry events, conferences, and meetups signals credibility at scale. Conferences are highly selective platforms; being invited onto a stage implies that organizers have already vetted your expertise and deemed your insights valuable to their audience. Getting on stage and delivering your core message with clarity and conviction will build your credibility more effectively than any academic degree or corporate title alone. It positions you as an expert, a visionary, and someone deeply knowledgeable about the future of your industry.

Beyond speaking engagements, thought leadership can take many forms. Consider publishing insightful articles on industry trends, contributing to reputable publications, hosting webinars, participating in expert panels, or engaging actively and intelligently on professional social media platforms like LinkedIn. By consistently sharing valuable perspectives, analyses, and predictions, you not only elevate your personal brand but also enhance your company’s reputation as an innovator and a leader. This proactive engagement attracts not only potential customers and talent but also investors who are always on the lookout for founders with a deep understanding of their market and a clear vision for the future.

Raise Symbolic Capital: Earn Third-Party Endorsement

The fourth significant factor is what we call symbolic capital — the way your company is perceived by the market through external validation and endorsement. A powerful way to acquire symbolic capital is through various ratings, awards, and prestigious features. These are usually put together by larger media outlets, industry associations, or influential organizations and include programs such as Forbes’ 30 Under 30, TechCrunch Startup Battlefield, Slush100, Y Combinator’s Demo Day, or various industry-specific awards.

Similar to the vetting process for conference speakers, participating in different features, accelerators, or award programs shows potential investors that a credible third-party player with a good reputation has already done a background check on you and is ready to endorse your company. This acts as a powerful de-risking signal for VCs. One well-known logo or endorsement in your company’s narrative or pitch deck can go a long way in securing the next round of funding for your startup, often opening doors that would otherwise remain closed. It suggests that your company has already passed a rigorous evaluation by respected entities, adding a layer of social proof and prestige.

A somewhat unexpected, yet increasingly critical, benefit of getting into the biggest ratings and roundups is its impact on your AI visibility. As artificial intelligence models become more sophisticated and integrated into search and discovery, the data they are trained on and the sources they prioritize will heavily influence what information is surfaced. Your company being featured prominently in one of these reputable lists will significantly improve the odds that AI-powered tools and conversational agents will highlight your company in relevant discussions, searches, and recommendations. This AI visibility is becoming increasingly important for user acquisition, considering that according to Feedonomics, 39% of users already use AI instead of traditional search engines for shopping and product discovery. Being recognized by AI means being discovered by a new generation of users and, crucially, by investors leveraging AI for deal sourcing and market analysis.

Reputation: An Asset You Can’t Buy, Only Build

Reputation is one of the rare and most valuable things in the business world that you simply can’t just buy with a marketing budget or a quick PR stunt. It is painstakingly built over time through consistent action, genuine credibility, and strategic communication. The example of one of our longstanding partners receiving an invitation to a dinner with the Royal Family of the United Kingdom perfectly illustrates this — it’s an honor that no amount of marketing budget, however lavish, will ever give you. It takes years of coordinated work, strategic effort, and unwavering commitment to ethical practices and impactful contributions.

This type of reputation building often doesn’t result in immediate, exact KPIs on day one, which is precisely why many startups lack the patience and the long-term strategic vision it takes to truly build profound credibility. They prioritize short-term gains over the sustained effort required for lasting impact.

However, as development and compute costs continue to fall, the number of startups entering the market continues to grow exponentially. This creates an increasingly crowded and competitive environment where innovation alone is no longer enough to guarantee success or funding. In such an environment, reputation becomes the ultimate key differentiator — the invisible hand that guides capital, talent, and customers towards companies that have earned their trust and respect. It’s the silent advocate that speaks volumes when you’re not in the room, distinguishing companies that attract capital from those that, despite their potential, remain overlooked. Prioritizing the diligent, strategic construction of your company’s reputation is not merely an optional add-on; it is a foundational investment in your startup’s long-term viability and success.

Julia Sabitova is a communications strategist and serial entrepreneur with more than 10 years of experience. She co-founded CloEE, an AI adviser for smart manufacturing, and leads BeGlobe, a PR agency for tech startups and VCs. She is a graduate of UC Berkeley’s SkyDeck Accelerator.

Illustration: Dom Guzman