# Overcoming Common Fundraising Excuses in Entrepreneurship
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Understanding Founders' Fundraising Excuses
Entrepreneurs often have a knack for crafting excuses when things don't go as planned. This tendency to rationalize failures can take many forms: self-justification, blame-shifting, or even outright denial. For instance, if this article fails to attract readers, I might conclude, "Medium.com must be altering its algorithm." This excuse conveniently absolves me of any shortcomings in my writing or content creation.
Founders, being human, are no different. My experiences as a founder and mentor have made it clear that many entrepreneurs utilize a limited set of explanations for their fundraising struggles. After hearing countless pitches, I've identified three predominant excuses that many founders share. Let's delve into these excuses and uncover their underlying meanings.
Excuse #1: "I just need to find a lead investor"
This is the most prevalent fundraising excuse I encounter. Many entrepreneurs I speak with believe that once they secure a lead investor, funds will flow in from others. A "lead investor" refers to an individual who establishes the investment terms and commits funds before anyone else. While a few exceptions exist, especially during seed rounds, lead investors are crucial for solidifying a funding round. Without one, the fundraising effort is merely an entrepreneur's aspiration.
The challenge of finding a lead investor is immense, leading founders to convince themselves that potential investors are simply waiting for this crucial figure before committing. However, here's the truth:
What the excuse really means:
If potential investors are not committing to lead your round, they are not waiting on the sidelines. Without a lead investor, your funding round does not exist, and you may just be deceiving yourself about the interest from others.
Excuse #2: "The investor just doesn't 'get' it"
Another common excuse is when entrepreneurs claim that investors simply fail to understand their vision. However, this reasoning is flawed. Investors, whether angel investors or venture capitalists, are generally savvy individuals who have proven themselves in competitive environments. They do not pass on investment opportunities due to ignorance.
What the excuse really means:
When faced with rejection, instead of blaming the investor's lack of understanding, reflect on why they chose not to invest. They may have insights about your business or market that you overlooked, or perhaps your presentation was lacking. Recognizing this can provide valuable lessons for future pitches.
Excuse #3: "They're definitely going to invest once I get more traction"
Some founders believe they just need to achieve more traction before certain investors will come on board. While this mindset might encourage ongoing effort, it can also lead to unproductive pursuits.
Most investors adhere to strict investment theses that dictate the types of companies they fund. For instance, an investor focused on growth-stage renewable energy firms will not invest in an early-stage edtech startup, regardless of its traction.
What the excuse really means:
Believing that additional traction is all that's needed can prevent founders from engaging in necessary self-reflection. It may indicate that you're pursuing the wrong investors or not dedicating enough effort to customer acquisition. Instead of continuing the same ineffective strategies, take a step back to identify and rectify what's hindering your fundraising efforts.
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