90% of fintechs fail funding here.

You can spot this scenario from a mile away:

The founder who's always “on the verge of raising funds.”

• Spending countless hours fine-tuning pitch decks.

• Crafting those all-important intro emails to investors.

• Practicing investor calls until they’ve got every single word down.

They’ve done a ton already: built the product, launched the website, and maybe even pulled together a small, committed team.

But there’s one major thing missing:

Customers.

• No interviews with users to gather insights.

• No feedback from the market to back up the concept.

• No visible signs that anyone's interested in the product.

Instead, there's just a lot of hope and a pristine roadmap that hasn’t been touched by real customer feedback.

The Main Issue

This situation happens way more often than you think, especially in the fintech world.

Smart teams may chase after venture capitalists (VCs) with enthusiasm for months but forget to connect with the very people they’re building for.

When you dig a little deeper, you’ll see the problems pop up:

• No real plan for navigating the complicated regulations.

• No evidence of product-market fit to show the product meets real needs.

• No strategies in place to properly grow and scale.

In the heavily regulated fintech sector, you can’t afford to skip the groundwork.

No investor is going to fund a project based only on a slick user interface and an appealing “great idea.”

What they’re really looking for is:

• A growing and engaged user base.

• A solid plan for legal compliance.

• Clarity on legal frameworks before scaling the business.

When I launched my legal firm, I wasn’t worried about impressing potential investors.

I focused on understanding what trips up founders as they make their way through this journey.

This mindset helped me create a service aimed at genuinely helping those in the industry.

My Game Plan For You

So, if you’re in the fintech game, here’s what you should focus on to build a strong base before you start chasing after investors:

1) Talk to Real Users Before Hitting Up VCs.

Make it a priority to run user interviews and feedback sessions. Don't build in a bubble.

Validating your idea means connecting with your target audience and making sure you really get what they need and want.

2) Get Product-Market Fit Instead of Just Polishing Pitch Decks.

Instead of rushing to create a perfect pitch deck, focus on rolling out a Minimum Viable Product (MVP) that genuinely serves users.

Make changes based on real user feedback and engagement, not just what potential investors think.

Keep an eye on important metrics like sign-ups, transactions, and user retention - not just app downloads.

3) Set Up a Solid Legal Foundation from Day One.

It’s also important to draft clear terms and conditions and privacy policies that fit your website and app, especially following guidelines like the Reserve Bank of India (RBI) rules and the Digital Personal Data Protection Act (DPDP).

Make sure you’ve got strong contracts with financial partners like banks and payment companies. Generic templates just won’t cut it in this tightly regulated space.

It’s worth investing in a legal advisor who knows the fintech scene to help navigate regulations, including KYC (Know Your Customer), AML (Anti-Money Laundering) processes, and data localization laws.

4) Put Together Your Compliance Plan.

Create a detailed compliance checklist that covers RBI guidelines, relevant regulations from SEBI (Securities and Exchange Board of India) or IRDAI (Insurance Regulatory and Development Authority of India), and necessary data protection protocols.

Make sure you can show investors you’re not just “legal ready,” but also ready for audits.

5) Build Traction and Then Tell Your Story.

Focus on getting your initial 100 (or 1,000) users while really addressing their challenges.

Use that growing traction as proof when you finally go to investors - let your user metrics and feedback do the talking.

Final Thoughts

In the end, no amount of polished pitch decks can make up for missing foundational support.

Focus on building for real users. Strengthen your legal operations. Make sure the backend is just as reliable and strong as the front end.

That’s how you set up a fintech company that catches the eye of both investors and customers.