What Novo Capital's Ben Harburg Looks For In Startup Pitches

As the co-founder and Managing Partner of Novo Capital, a global investment firm focused on emerging technology markets with over US$2 billion in assets under management, Ben Harburg has seen more than his fair share of startup pitches. By now, he’s clear about what exactly grabs his attention—and what sends him running. Inc. Arabia asked him to break it down into red and green flags—and here’s how he explained it all to us.

Green Flags

1. Strong Product-Market Fit And Hyper-Growth Potential

“When evaluating a startup, the first thing I look for is evidence that the product is solving a real, urgent problem. Entrepreneurs need to demonstrate not just a good idea but actual traction—paying customers, strong retention, and clear market demand. If a business isn’t seeing organic momentum, it’s a sign the market may not need it as much as the founder thinks. Product needs to be a ‘must have,’ not a ‘nice to have,’ and solve an acute customer pain point. Anything that is a marginal improvement over the status quo is not attractive.”

2. Scalable And Defensible Platform Capabilities

“A startup can’t be a one-trick pony or just a component in someone else’s value chain. I look for founders who are building a platform or ecosystem, not just a single product with a short shelf life. Can the business expand into adjacent markets? Is there a natural evolution to new revenue streams? The best entrepreneurs think beyond their initial offering and plan for long-term scalability.”

3. Unique And Sustainable Competitive Moat

“It’s not enough to have a great idea—you need to own your space in a way that others can’t easily replicate. We seek unnatural monopolies. Whether through proprietary technology, corporate/government partnerships, or a deep industry edge, I want to see a founder who has an irreplicable edge in their vertical. If a competitor with more funding can easily copy what you’re doing, you don’t have a moat—you have a problem.”

Red Flags 

1. Overly Optimistic Financial Projections

“While financial planning is essential, multi-year revenue forecasts filled with speculative numbers add little value. No one knows exactly where a business will be in five years. What matters more is understanding key growth levers, identifying early traction, and showing a realistic path to profitability based on actual performance—not hopeful predictions.”

2. Irrelevant Personal Accolades And Vanity Metrics

“I get it—recognition feels great. But awards and media mentions don’t make a founder investable. I’ve seen pitches that highlight things like winning a business school competition, or being on some ‘top 100 entrepreneurs’ list. Those are nice, but what really matters is real-world execution, resilience, and a deep understanding of the problem you’re solving. I don’t care where you went to college if you have a unique mastery over your vertical.”

3. Buzzword-Driven "Fast Followers"

“Throwing in artificial intelligence, blockchain, or whatever the latest hot trend is doesn’t make a startup innovative. I avoid founders who chase hype, rather than solving a unique, ideally uncontested problem. The best pitches come from people who are deeply immersed in their industry, have a unique perspective, and are building something with long-term value, not just riding the latest wave hoping to cash in. Often this means building far away from the crowds in a sector that will take years for others to appreciate.”

Pictured in the lead image is the co-founder and Managing Partner of Novo Capital, Ben Harburg. Image courtesy Novo Capital.

This article first appeared in the April/May 2025 issue of Inc. Arabia magazine. To read the full issue online, click here.