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Oct 3, 2025
What do VCs look for in infrastructure and industrial tech startups? Learn the team, moat, milestones, and scale signals investors like Konvoy want.
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What VCs look for in infrastructure and industrial tech startups differs from what they want in SaaS.
Because timelines are longer and capital needs are higher, VC partners go the extra mile.
But the payoff lasts; you could become a long-term partner for companies solving tough engineering problems for utilities, factories, and defense agencies.
Here’s what VCs might look for when you pitch.
Reshoring, supply chain risk and the rise in defence budgets are all opening up sectors that have been under-invested in for years.
Konvoy's US Supply Chain Constraints newsletter points out that the actual bottlenecks are downstream in refining, tooling and skilled labour rather than in the raw materials.
That's the opportunity that Konvoy's Critical Industries thesis is focused on, from energy and the grid through to advanced manufacturing.
Vcs will be looking at a domain expert team, a technical moat, milestones that de-risk the technology, a realistic path to scale and a clear understanding of how their buyers purchase.
Below, we’ll explain each one.
Industrial buyers trust people with real experience in their field.
Investors want founders who have both engineering backgrounds and hands-on experience in plants, utilities, or defense programs, and who can recruit the specialists they need.
Expect investors to look closely at your IP, expertise, and regulatory knowledge.
Be ready to name two or three key performance metrics and show how they stack up against the best in the field.
Konvoy's explainer on what deep tech is is all about why technical depth in itself becomes the moat.
Prior to sales, investors will track the technical milestones achieved on time and on budget, pilot agreements, letters of intent, and grants.
Non-dilutive funding from government programs goes a long way toward underpinning equity and validating the science.
Konvoy's guide on how hardware startups can get venture funding breaks down the concept of proof.
A working prototype isn’t enough.
VCs want to see how you’ll produce or deploy your product at scale, what it will cost, and which initial market will give you early traction.
Hybrid models (hardware plus software, or service contracts) are good for margins and recurring revenue.
Defense agencies and infrastructure operators usually buy slowly, but when they do, they sign long-term contracts.
Show who approves the purchase, how procurement works, and how you’ll cover any funding gaps.
Products with both commercial and government demand, like those in Konvoy’s guide to dual-use technologies, can reach more buyers.
Start by describing the problem in practical terms, such as downtime, cost, or national security risk.
Match your milestones to each funding round and focus on firms with a clear thesis in your sector.
Konvoy's playbook on raising capital for critical infrastructure and national security tech is all about how to frame that pitch.
VCs want infrastructure or industrial tech startups with domain expertise, a real technical moat, proof through milestones, a plan to scale, and an understanding of long sales cycles.
Konvoy has the founders in these categories as part of its Critical Industries and Deep Tech & Hardware focus areas.
Explore Konvoy's investment theses and subscribe to our newsletter.
A good team, a validated problem and early technical proof. Pilots or LOIs are worth more than revenue at this stage.
Development cycles are longer, capital requirements are higher and diligence is based on technical experts and milestones rather than growth metrics.
Yes, investors will fund against technical milestones, pilots and grants on the basis of a clear commercial path.
Konvoy is a thesis driven firm backing founders in the areas of defence, energy, advanced manufacturing and robotics (among others) with examples being Seasats and Lux Aeterna. Read why Konvoy invested in Battle Road as a case in point.
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