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Fundraising · Fashion

5 questions investors ask fashion founders

Investors who back fashion companies ask a familiar set of questions. Here are the five that come up most, why they ask, and what a strong answer looks like on a slide.

Write my investor story freeSee the questions
INVESTORHow do you avoid dead stock?
OCHRE STUDIO78% full-price sell-through · small drops of 24 pieces
INVESTORWhat is your return rate and why?
OCHRE STUDIOReturn rate 11% · fit guide cut it from 19%

The five questions

Each answer is shown for our fictional fashion company, Ochre Studio, which makes handloom contemporary womenswear. The numbers are illustrations. Swap in your own.

01

How do you avoid dead stock?

Why they askUnsold inventory destroys fashion margins.
A strong answer showsSell-through and how you plan quantities.
OCHRE STUDIO

78% full-price sell-through · small drops of 24 pieces

Sample slide line · illustrative numbers
02

What is your return rate and why?

Why they askReturns are expensive in fashion.
A strong answer showsReturn rate and the top reason.
OCHRE STUDIO

Return rate 11% · fit guide cut it from 19%

Sample slide line · illustrative numbers
03

What makes the label recognisable?

Why they askFashion brands win on a clear point of view.
A strong answer showsSignature product, fabric or design language.
OCHRE STUDIO

Signature handloom indigo · 40% of sales

Sample slide line · illustrative numbers
04

How do you reach customers beyond Instagram?

Why they askOver-reliance on one channel is risky.
A strong answer showsOther channels and their share.
OCHRE STUDIO

Pop-ups and stockists bring 30% of revenue

Sample slide line · illustrative numbers
05

What are your margins at full price and on sale?

Why they askDiscounting can erode the brand.
A strong answer showsMargin at full price and the share sold on discount.
OCHRE STUDIO

64% gross margin · 15% of units sold on sale

Sample slide line · illustrative numbers

The four numbers they check first

Before the questions, investors scan for these. Show each one by month, with dates, so the trend is easy to read.

Metric 1Full-price sell-through
Metric 2Return rate
Metric 3Repeat customers
Metric 4Inventory turns

The gap that costs fashion founders meetings

Gap

The most common gap in fashion decks is too many products and no hero line. Fix it before you send the deck.

Know your buyer

Your customers are shoppers buying clothing, footwear or accessories. Name the first group you will win, and show why they pick you today.

Prepare the appendix

  • Monthly metrics for the last 12 months
  • Unit economics by customer group
  • Your answer to each question above, with sources

Questions

What do investors look for in a fashion startup?

They start with these metrics: full-price sell-through, return rate, repeat customers, inventory turns. Then they test the five questions on this page.

What is the most common gap in fashion pitch decks?

Too many products and no hero line.

Are the numbers on this page real?

No. They are illustrations for a fictional company, Ochre Studio, to show what a strong answer looks like. Use your own numbers.

Can Astitva build my pitch deck?

Yes. Astitva writes your investor story from a short brief, in the order investors expect, and designs every slide in your brand. The written story is free.

Answer them before they ask

Astitva writes your investor story from a short brief, in the order investors expect, then designs every slide in your brand.

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