Why Do I Keep Hearing No From Investors?

October 13, 2015

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Photo credit: sboneham/Flickr.com.

If you want funding, you need to start with a business that is fundable. Ask any serious advisor or investor and you will get an absolute truth: 99 percent of the ideas as they come are not fundable.

From here you have only three choices. One is not so smart. The other two are just fine.

1) The not-so-smart one is to insist that your idea is fundable and spend your time pitching it around. All you will get is NO. Sometimes polite NO. Sometimes an insulting NO. This will result in a bruised ego and wasted time, wasted energy, wasted resources, wasted runway.

The two better choices are:

1) Develop your business to a fundable stage. Sometimes that will mean a pivot. Sometimes, positioning for a different market. Sometimes, you'll need to scratch the whole idea and start with a better one. There are a lot of things that can be done if you are determined to create a fundable business.

Or,

2) Simply accept that your idea is not fundable, at least for now, and get going by selling to customers.

The last two choices are both good choices.

Addendum: A venture fundable business, in its simplest form is one that scales exponentially to a billion-dollar level. There are other nuances like defensibility of the IP, subjective issues like whether the investors consider the founder 'fundable', but the TAM (Total Available Market) needs to be very large, and the growth rate needs to show a hockey stick. Ninety-nine percent of the businesses out there fail to meet these requirements, and hence, are not fundable.

We can work with you on these choices at our Free 1M/1M Public Roundtables.

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