From Startups to Unicorns

From Startups to Unicorns

From Startups to Unicorns

How UX/UI Can Make or Break Your Funding Journey

How UX/UI Can Make or Break Your Funding Journey

How UX/UI Can Make or Break Your Funding Journey

Cristina Sturza

Design

September 23, 2024

8

min read

Why UX/UI is More Than Just Design in the Startup World


For startups, the journey from inception to unicorn status is filled with challenges. Securing funding is one of the biggest—and most often overlooked factors in this journey is the role of user experience (UX) and user interface (UI) design. While many founders focus on creating an innovative product or securing their go-to-market strategy, they often neglect the impact that UX/UI has on investor perception and user adoption, both of which are crucial for successful funding rounds.


In today’s competitive landscape, investors are not just looking for disruptive ideas—they’re seeking products that can scale. A polished, user-friendly interface can be the difference between attracting investors or leaving them unsure about the potential for growth.


Let’s explore how UX/UI can make or break your funding journey and how startups that prioritize design have a better shot at reaching unicorn status.


1. First Impressions Matter: Investors Judge Products by Their UX/UI

Investors are users too. When they interact with your platform—whether it’s a pitch deck, demo, or beta product—the first thing they evaluate is the experience. A product that’s hard to navigate, visually cluttered, or lacks clarity raises red flags about the team’s understanding of user needs and scalability.


Case in Point: Canva’s UX-Driven Funding Success

Canva, the graphic design platform, raised over $372 million and achieved unicorn status largely due to its incredibly simple and accessible user interface. Canva democratized design by providing non-designers with the tools to create professional-looking graphics. Investors saw the potential because Canva’s interface made a complex process—graphic design—easy, intuitive, and fun. This user-centered approach helped Canva scale rapidly, with over 100 million users, and become a favorite tool for individuals, small businesses, and enterprises alike.


What Startups Can Learn:

Your UX/UI is your first impression. An investor’s initial interaction with your product needs to be frictionless. The more time they spend trying to figure out the platform, the less confident they’ll be in its scalability.

Show that you understand your users. A well-thought-out UX/UI design signals that your startup has a deep understanding of user behavior and can meet their needs efficiently.


2. UX/UI Tells a Story: Building Trust Through Design

Investors are placing big bets on your company. They need to be confident that your product can earn trust and drive adoption. A poorly designed interface raises questions about your team’s ability to execute and retain users. Investors look for startups that can tell a cohesive brand story through their product design, one that aligns with the needs and desires of the target audience.


The Slack Example: From Startup to Unicorn with Thoughtful UX

Slack, the workplace communication platform, is an excellent example of how good UX/UI translates into funding success. From the start, Slack’s interface was designed to be intuitive, visually appealing, and aligned with its brand ethos of creating a fun yet productive communication tool. This design-first mentality helped Slack raise over $1.4 billion in funding and reach unicorn status in record time. Investors saw that users loved the product because it was easy to use and enjoyable—factors directly tied to thoughtful UX.


What Startups Can Learn:

Design is a trust-builder. The more intuitive your product, the more users and investors trust that it’s capable of solving problems at scale.

Cohesive storytelling through UX/UI: Your interface should reflect the values and mission of your brand, not just function as a tool. Investors will look for this narrative alignment.



3. Scalability: Investors Look for UX/UI that Supports Growth

As startups scale, the challenges around user retention and product adoption grow exponentially. Investors want to know that your product won’t collapse under the weight of more users, new features, or expanding markets. This is where scalable UX/UI comes into play. A product designed with scalability in mind—meaning it can handle increased user traffic, changing user needs, and evolving product features—is far more attractive to investors.


Airbnb’s Scalable UX/UI Strategy

When Airbnb was in its early stages, it focused heavily on scalability in its UX/UI. The company knew that the platform needed to be accessible and easy for users to book accommodations across different countries, languages, and currencies. By designing a platform that could seamlessly scale, Airbnb attracted early investors who saw the company’s potential to become a global travel marketplace. Today, Airbnb’s UX/UI continues to evolve and scale with the platform’s growth, proving that a design-first approach supports long-term success.


What Startups Can Learn:

Design for the future, not just the present. A scalable UX/UI should anticipate future needs—whether that’s accommodating new features, adding more users, or expanding to new markets.

Investors seek stability through design. If your design can handle growth, it instills confidence that your startup is ready for rapid scaling.


4. UX/UI is Key to Adoption: More Users = More Funding

It’s simple math—more users equal more value. Investors are far more likely to fund startups that show strong user adoption rates, and UX/UI plays a critical role in this. A smooth, enjoyable experience is essential for converting first-time users into loyal customers. In fact, 70% of startups fail because they fail to meet user expectations, often due to poor UX/UI (CB Insights).


Duolingo’s Growth Through UX

Duolingo, the popular language-learning app, raised over $183 million in funding and became a unicorn, thanks in large part to its user-friendly design. Duolingo simplified the learning process with gamification elements, engaging users and keeping them on the platform. Its success wasn’t just about the content—it was about delivering that content in a way that users found fun, rewarding, and easy to navigate.


What Startups Can Learn:

Focus on user retention through UX. The more enjoyable and intuitive the experience, the higher the likelihood of user retention and adoption.

Adoption drives investment. The more users you retain, the more attractive your startup will be to investors looking for products that show scalability and market fit.


5. Design as a Competitive Edge: Standing Out in Crowded Markets

In saturated markets, good UX/UI design can be the defining factor that sets your startup apart from the competition. Investors are looking for startups that have differentiated themselves, not only through innovation but also through the experience they offer. In a world where users have endless options, a unique and memorable user experience is what keeps them loyal—and keeps investors interested.


What Startups Can Learn:

Use design to create differentiation. Whether through micro-interactions, minimalism, or gamification, your design should offer something unique that competitors can’t easily replicate.

Show your competitive advantage through UX/UI. A well-designed product makes a strong case for why users—and investors—should choose you over the competition.


Conclusion: UX/UI is the Key to Your Funding Journey

For startups looking to move from seed funding to Series A and beyond, a strong UX/UI is not optional—it’s a necessity. Investors are evaluating your product based on more than just the concept; they are looking at how user-friendly, scalable, and differentiated your product is. Startups that prioritize UX/UI are better positioned to attract funding, retain users, and scale successfully.


Let Montegrey Help You Design for Growth

At Montegrey, we specialize in designing scalable, investor-ready UX/UI that propels startups toward funding success. Whether you’re preparing for your next pitch or building a product that needs to scale, we’re here to help. Let’s talk about how Montegrey can design the UX/UI that gets investors excited and helps you move from startup to unicorn.


Contact us today to start your journey toward growth and funding.

Montégrey

Montégrey

Montégrey thrives at the intersection of visionary thinking and tangible brand growth.


hello@montegrey.com

Montégrey thrives at the intersection of visionary thinking and tangible brand growth.


hello@montegrey.com

Montégrey thrives at the intersection of visionary thinking and tangible brand growth.


hello@montegrey.com

© 2024 Montégrey. All rights reserved.

© 2024 Montégrey. All rights reserved.

© 2024 Montégrey. All rights reserved.

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Built with in Transilvanya

Built with in Transilvanya