As part of our new series – Cosmic Conversations – we’re sitting down with VCs from across the UK to get their perspective. My first guest was David Levine from Manchester Angels.

David talks about the current investment landscape, whether founders should look for Angel or VC investment, and the importance of GTM strategy when raising cash. 

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What does the current investing landscape look like in the UK? 

I’ll always challenge the notion that there isn’t enough cash in the market. There’s more than enough—what we lack are good, investment-ready businesses. People often confuse investment readiness programs and polished pitch decks with having genuine business fundamentals. The reality is many businesses aren’t venture-backable. They’re not targeting large markets, lack clear go-to-market strategies, or haven’t validated their startup hypothesis. 

We’re seeing businesses spending years jumping from accelerator to accelerator, getting minimal funding without making substantial progress. The quality of businesses is the real issue, not the availability of capital. Why should investors back businesses that aren’t properly prepared? With the rise of AI, we’re seeing AI-native businesses emerge—companies that incorporate AI as their core foundation rather than just using it to optimise existing processes. 

Angel or VC—how do founders determine what’s best for them and their business? 

There are several urban myths about venture capital and angels. One is that it’s easier to convince an angel to invest—this often isn’t true. Unlike VCs, angels don’t have scheduled investment committee meetings or deployment deadlines. Their priority is protecting generational family wealth, and they understand firsthand how challenging it is to build a substantial business.  

Many VCs in Europe, particularly those who haven’t been founders or operators themselves, lack this perspective. 

Angels can be incredibly valuable, especially early on when you need industry expertise. If you’re building technology to solve a specific problem, having an angel who’s been in the decision-making position your technology targets can be a force multiplier. This validation can help you progress toward venture funding with real-world proof that your startup hypothesis holds true. 

What does validation look like? 

Validation is anything that proves your hypothesis in the real world. Revenue is typically the best proxy, but it needs to be the right kind of revenue. If you’re building a SaaS business with monthly payments, consulting revenue for customer onboarding isn’t great validation. You should be moving toward product-led growth where customers can self-serve, self-sell, and self-onboard. 

While annual recurring revenue contracts are excellent for cash flow, monthly payments where customers choose to stay with you are actually stronger validation. It demonstrates they truly value what you’re offering. 

How important is GTM when it comes to raising cash? 

I wish I saw more focus on go-to-market motions because they’re often missing from pitch decks. This is probably the biggest gap I’m seeing across UK businesses right now. 

Many businesses approach investors without understanding where their buyers are, how they make decisions, or what the world looks like from their perspective. It’s rare to see good GTM motions, which is incredibly frustrating. 

That said, I’ve recently seen some businesses that really stand out—they haven’t built their product yet but have secured pre-sales. If you show up saying you haven’t built the product but have £100,000 in pre-sales, that’s incredibly compelling. While I don’t have a bias toward specific GTM approaches, I want to see the thought process and strategy behind them. 

How should founders approach fundraising? 

If I had to distil it down, research is absolutely critical. You need to fill your funnel with well-researched, qualified investors. Unless you’re a serial founder with multiple successes, you can’t expect to talk to just five investors and secure funding. You need to engage with many investors, but there’s no substitute for thorough research to understand what each investor seeks and how you fit their criteria. 

What’s interesting is that while we respond to cold inbound inquiries, less than 2% of our investments come from them, even highly researched ones.  

The vast majority come from warm referrals and introductions. Whether this is because of trust or because referrers act as quality filters isn’t entirely clear, but the pattern is undeniable. 

What do VCs want in a founder? 

I look for resilience, thick skin, and the ability to handle ambiguity while maintaining a clear vision that inspires others.  

Deep industry knowledge is crucial early on—founder-market fit really matters. Flexibility is also key. In the UK, we often talk about backing the jockey, not the horse, but in reality, we tend to back the jockey only when the horse is already showing promise. We need to make more early bets on founders based on their capabilities rather than waiting for business validation. 

It’s important to note that founding a startup isn’t glamorous—it’s hard work, low pay, and immense responsibility.  

As Jensen Huang from NVIDIA once said, “If I knew how hard it was going to be, I wouldn’t have done it.” Maybe it’s good we don’t tell founders exactly how challenging it will be. 

How should founders approach pitching  events? 

I’m not a fan of pitching events unless they include specifically targeted investors who align with your business. You should focus on researching and creating lists of potential investors who can add value based on their track record. Only pitch at events where these target investors are present. 

Most importantly, never pay to pitch. It creates misaligned incentives from the start. If an organisation charges you to pitch, they’re more interested in who can pay rather than quality. Especially in early stages when cash is crucial for survival, founders should absolutely say no to paying for pitch opportunities. 

About David

David Levine is an experienced technology entrepreneur and investor with over two decades of experience in launching, scaling, and successfully exiting businesses. As the founder of Fixtuur (previously DigitalBridge), he pioneered AI-powered visual commerce solutions. Currently, he excels at raising capital for Preseed to Series A technology businesses across Europe, serving as both CEO of Glenluna Ventures and Principal at Manchester Angels—a network of 41 exited angels investing in disruptive technology businesses around Manchester.