Startups rely on venture capitalists investing in their potential, thus the ability of the founders to sell their vision to investors is of the utmost importance to their survival. In 2018, over 20 percent of founders said that they pitched to between 11 and 20 venture capital firms during their last funding round. However, the founders aren't in the habit of accepting investment at any cost. A 2018 survey found that the terms of the deal and the investor having a good character were the most important factors for founders when picking a lead investor.
Although competition is steep among startups and the vast majority fail, a 2018 survey found that 66 percent of venture-backed startup founders were concerned with hiring good people for their company, while only 15 percent were concerned about competition. However, less than five percent in the same survey were concerned about diversity, which has become one of the most prevalent points of criticism in the startup sector. As recently as 2019, 63 percent of technology and healthcare startups has no women on their board of directors.