Came across a tweet today of someone complaining that no investor is interested in them to invest. The trend lately is to tag the PM on all these whining.
Listen. Investment is not an entitlement. Statistically less than 1% of businesses will even qualify for venture capital. And that is being super generous.
If you are 20 something, the very fact that you know about venture capital and can at the very least pitch for it shows how far we have come. A generation ago entrepreneurs took personal risks in loans and such to chase a dream. Half a generation before that (and even today) many families risk their savings and mortgage family homes as a way to get started on a business idea.
Imagine what a privileged brat one must be that they are disappointed at the world because someone didn’t fund them crores on the basis of a powerpoint presentation!
Investors are in the business of saying no. They manage other people’s money and they’ll say no to 99.9% of the entrepreneurs and pitches they hear.
Investors aren’t giving you their money just because you want it. They are investing because they see a high possibility of getting more back in return. (Read this over and over again till it sinks in)
1. Show that you have vision.
2. Demonstrate capability.
3. Prove demand.
And you will have the opportunity to convince them on non-linear growth ahead. If you succeed, you get the capital, else not.
Entrepreneurs who blame investors because of their inability to raise capital, will blame markets because of a bad product and will blame their team for bad leadership. At the least, investors and moreso fellow entrepreneurs are excited to see an entrepreneur lead, “despite everything”.
Entrepreneurship at the end of the day is about making things happen, despite how everything else was and is.
It’s weird, but in the last 14 odd years I have never once met an entrepreneur who has raised money having that as their sole intention. Entrepreneurs who raise capital and have investors circling them are those who against all odds are going after something much bigger and capital is just one of the several things along the way.