The fundamentals always win.

I was recently asked about how emerging companies can best pitch their value proposition more effectively to investors, given the increasing aversion toward risky investments and high interest rates.

The reality is that the best companies will continue to get funded. Why? Because they have a solid foundation.

They have the right idea, with the right team, at the right time.

The companies that won’t get funded are the ones who are missing one more of those elements.

If you come to an investor with rock-solid fundamentals about your business - and can tell your story in a compelling way - they’ll invest, regardless of interest rates.

But should you take it? That’s the most important question to ask yourself.

I’ve long spoken about one of the biggest challenges that founders face - turning down money.

Too often, founders forget that investment is a two-way street and they need to be evaluating an investment partner as well.

Founders ignore red flags because they’re so excited that someone believes in them. But this blind spot can lead to long-term problems.

And if funding slows down as it has been recently, the temptation to take the money from an investor who just isn’t right for you is even stronger.

Do your homework. You’re worth it.