Tech startups leverage investor funding to fuel innovation by acquiring necessary resources to develop and launch new products or services. Funding allows startups to invest in research and development, hire talent, and scale operations effectively. This financial support enables them to experiment with innovative technologies and solutions, helps establish market presence, and attracts more customers. By utilizing investor funding strategically, startups can accelerate their growth and enhance their competitive edge in the marketplace, leading to successful exits or future rounds of investment.