Investors do not fund a technology project simply because it uses artificial intelligence. They need evidence connecting the problem to a customer, the product to demand, the model to revenue and the spending plan to a credible path to growth. A market study identifies the problem, target segment, alternatives, competitors and buying process. Describing the market as large is not enough; the study should show who will pay, why they will pay and which assumptions still require testing. The financial model should cover revenue streams, product-development cost, customer-acquisition cost, operating expenses, cash needs and growth scenarios. Figures should be presented as reviewable assumptions, not promises of success. A feasibility study also examines technical, regulatory and commercial risks, including data dependence, privacy, talent availability, information security and the ability to turn a pilot into sustainable operations. A strong investment file answers five questions: What problem is solved? Who is the customer? How will the product reach the market? How will it generate measurable revenue? What capital is needed and why? A feasibility study organizes evidence, assumptions and alternatives to support an informed decision; it does not guarantee funding. Sources: SDAIA, National Strategy for Data and AI: https://sdaia.gov.sa/ar/SDAIA/SdaiaStrategies/Pages/NationalStrategyForDataAndAI.aspx Saudi Venture Capital: https://svc.com.sa/ar/about-us-ar/ Public Investment Fund, HUMAIN: https://www.pif.gov.sa/ar/our-investments/our-portfolio/humain/

What Do Investors Evaluate in a Tech Project?

Investors look for a real problem in a defined segment, evidence of demand, a revenue model with improving unit economics, and a team able to execute within understood risks. The better these are documented, the clearer the investor conversation.

Note

Market data reduces uncertainty and strengthens the file, but it does not guarantee funding; the final decision rests with the investor.

Market Data File Before a Funding Round

  • Problem statement, target segment and the customer’s current alternative.
  • Serviceable market estimate for the first stage and how it was calculated.
  • Demand evidence: interviews, pilots, letters of interest and usage metrics.
  • Competitor and alternatives analysis and why customers would switch.
  • Revenue model, pricing and unit economics.
  • Use of funds and the execution milestones it finances.

Steps to Build a Data-Backed Investment File

  1. Define problem and segment: State the problem, target customer and testable demand hypotheses.
  2. Gather market evidence: Desk research, customer interviews and competitor analysis to confirm or adjust hypotheses.
  3. Build the financial model: Link revenue, costs and acquisition to cash needs and growth scenarios.
  4. Prepare the investor pitch: Summarise evidence, numbers and risks in a concise pitch and a reviewable data room.

When Do You Need an Independent Market Study?

You need an independent market study when demand evidence is limited, when targeting a significant round or a funder requiring a documented feasibility study, or when operating in a regulated sector.

Investors fund clarity and discipline, not enthusiasm alone.

Frequently Asked Questions

Does a tech project need a feasibility study before raising funds?

Not always in a traditional format, but investors need market evidence and a clear financial model. A market and feasibility study organises this evidence.

What is the difference between total and serviceable market?

The total market describes the whole sector; the serviceable market is the part the project can realistically serve with its channels and resources at first.

Does Googan guarantee funding?

No. We help prepare an organised, evidence-based study and investor file; the funding decision belongs to the investor or funder.

Does your project need an economic feasibility study?

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