I see a predictable pattern!
Oct 31, 2022
I see a predictable pattern as to why founders don't get funded.
>> They don't have Founder/Investor Fit.
>> Which is exactly like Product/Market Fit.
And to fix this, they'll have to rewire their thinking.
When it comes to investors (or donors for nonprofits), there is ...
- Dumb money
- Smart money
- Entrepreneur money
- Institutional money
- Patient money
- Impatient money
In my opinion, the smartest money is from HNW entrepreneurs/investors who have already been to where you're trying to go. This is smart, patient money.
Unlike impatient institutional money, they won't fire you in two years.
Nothing worse than VC who haven't built a successful venture themselves. Betting on a venture, versus having the experience of building one, are two different things.
THE FIX ...
Understanding investor readiness is the key. That is, how do you become what investors are looking for?
The top 3 reasons for failure: (no bueno)
#1 Your thesis is off and you can't admit it
#2 You don't have an actual customer acquisition strategy
#3 You are overly focused on raising capital vs creating revenue
The fix. Rewire your approach to 1, 2, and 3.
And for God's sake, don't become the angry founder scolding the VC on social media because you can't get funded. As an entrepreneur, you'll end up scolding the market for rejecting your product. YUK!
Be open to changing your thinking, so you can change your doing, so you can change your results.
Think. Do. Results. (TDR)
-Gerald
