What to Say to Investors About Your No-Code Startup

No Code
August 10, 2024
Andreas Just
August 10, 2024

When we first built our product using no-code tools in the startups I worked at, one of the big questions on our minds was, "What will investors think?"

It's a reasonable concern. After all, with most no-code platforms, you don't actually own the code, and that can understandably raise some eyebrows with potential investors.

But we went ahead and did it anyway—and successfully raised funds for our no-code product. In this post, I want to share the key arguments we made to address investor concerns.

Looking for Investors with No-Code

Our approach was straightforward. We built an MVP that addressed a real pain point, gained traction with around 130 users on our platform, and then set out to raise money to scale the business.

We reached out to every VC and investor we thought could be a good fit for our business, regardless of whether they had product knowledge or technical expertise that might make them skeptical about our no-code approach.

The crucial point here is to have confidence in your solution, not just in the tech stack you used to build it.

Once we got into detailed discussions with investors, questions about our product and tech stack inevitably came up—but often later in the conversation. And, of course, we were prepared to discuss them.

What to Say to Investors About No-Code

To our surprise, some investors had very little knowledge about no-code—if they knew about it at all. And yes, there were others with product and tech backgrounds who were initially skeptical.

The key is to focus on the benefits—why you chose no-code and the results you've already achieved. Here’s what we emphasized:

"We're Faster Than Our Competitors"

We walked investors through our development process, giving them a peek into the backend. At that point, we had done user interviews, confirmed the need, planned our MVP, and built it—all in less than a month. Most investors were impressed, and as our user base grew week by week, their trust in our solution grew too.

"We Wanted to Save on Tech Resources and Invest in Growth Instead"

Being familiar with no-code, we knew it was the best way to build our MVP efficiently. Even with agency support, it was probably ten times cheaper than traditional development. This allowed us to allocate more resources to marketing, sales, and customer acquisition, which, in turn, helped us demonstrate traction to investors.

"We Acquired 130 Users Just Three Weeks After Launch"

This was likely our strongest argument. Once investors saw our rapid user growth, the no-code discussion became a non-issue. Our decision to spend less on product development and more on sales and marketing paid off, and the results spoke for themselves.

How to Address No-Code Concerns with Investors

Many investors might not even be aware of no-code, or they may not care much if the rest of your startup looks solid. Focus on the positives and highlight the results you've achieved with your no-code product.

If concerns about your tech stack do come up, explain that no-code allowed you to build a cost-efficient MVP, which helped you validate your business model. Once validated, it's easy to rebuild in traditional code if needed—but today, building a scalable no-code app is no longer an issue. For more on that, check out this article.

Final Thoughts

Don't hold yourself back from starting and building your no-code product just because you're worried investors might not back you because of it.

In fact, I'd argue that it even helped us raise money. Thanks to no-code, we were able to show significant traction right from the beginning—which was pretty impressive, even to investors.

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