CONNECTOLOGY Spotlights: Navigating Regulatory Challenges to Build Investor Trust

BY: RYAN LYTLE

For startups, especially those operating in highly regulated industries, securing investor confidence isn’t just about having a great product. It’s about demonstrating a deep understanding of the regulatory landscape and showing that you’re built to last. We sat down with CONNECTOLOGY Mentors Kambis Kohansal Vajargah and Sandro Michelmann to gain their insights on how startups can strategically position themselves to earn investor trust and stand out in a competitive market.

Leveraging Patient Capital and Long-Term Partnerships

Kambis, who serves as Head of Startup-Services and Deputy Head of Founder-Services at the Austrian Federal Economic Chamber, brings a wealth of experience from working with both startups and public authorities. One key strategy he emphasizes is the effective use of patient capital—long-term funding often provided by government bodies.

“In deep tech and sectors where R&D timelines are longer, patient capital is invaluable. Public authorities often offer support that allows startups to think in decades, giving them the room to innovate without the pressure of short-term returns.”

Kambis stresses that building strong relationships with public authorities is essential for accessing evergreen funds—offering startups a stable financial foundation that private sector investors may not provide. Startups that align their long-term vision with patient capital are positioned to attract investors seeking stability and strategic partnerships that foster sustainable growth.

Navigating Market Regulations and Policy Shifts

Sandro, an Associate at Vireo Ventures with expertise in pre-seed and seed-stage investments, highlights the importance of understanding the regulatory environment, particularly for startups operating in industries where government policies play a pivotal role.

“Startups must be prepared for the slow, conservative nature of certain industries, especially those involving utilities or heavily regulated markets. Long sales cycles and complex regulatory requirements mean startups need to be adaptable and have a thorough understanding of market conditions.”

While government policies can provide initial advantages, Sandro advises that startups should avoid over-reliance on them. As policies can shift due to government changes or financial crises, startups must remain agile and adaptable. By staying informed and preparing for regulatory shifts, startups can present themselves as low-risk, adaptable investments—traits that build investor confidence.

To summarize – securing investor trust goes beyond having a groundbreaking idea – it requires commitment to mastering the intricacies of policy and funding. Founders who embrace these challenges position themselves not just for short-term success, but for sustainable growth and long-term investor confidence.

For those ready to start fundraising, our CONNECTOLOGY Investment Readiness Accelerator offers the support needed to succeed. This program equips startups with the tools, guidance, and connections needed to confidently navigate the fundraising journey. 

For more information, please contact [email protected].