If you're deep into the fundraising process, you know that facing rejection from angel investors is not uncommon. In fact, according to Antler, a promising startup gets 17 nos before ever hearing 'yes.' 😳 The truth is that the path to yes is often paved with many, many nos. So while rejection can be difficult, here are some tips to turn a bummer moment into a positive experience for your fundraise:
If you're deep into the fundraising process, you know that facing rejection from angel investors is not uncommon. In fact, according to Antler, a promising startup gets 17 nos before ever hearing 'yes.' 😳 The truth is that the path to yes is often paved with many, many nos. So while rejection can be difficult, here are some tips to turn a bummer moment into a positive experience for your fundraise:
When an investor says 'no', it's not the end of the road—it's a chance for growth. See every rejection as a valuable learning opportunity. Take the feedback provided (and if it isn't given, ask for it) and use it to refine your pitch, improve your business model, and strengthen your value proposition.
Investors invest in people as much as they do in ideas. Show investors your resilience and determination. Let them see that setbacks only fuel your motivation to succeed. A positive mindset can make all the difference in attracting future investors.
Use the feedback from rejections to refine your pitch and/or take a critical look at your assumptions, financial projections, and market analysis. Make the necessary adjustments to enhance your business model and address any concerns raised by investors. By continually improving, you increase your chances of securing funding in the future.
Even if an investor says 'no', don't burn bridges. Maintain the relationship and nurture connections. Investors may not be interested in your current venture, but they could become valuable contacts for future opportunities. Keep them updated on your progress and milestones. You never know when a 'no' can turn into a 'yes'.
Raising funds is a marathon, not a sprint. It requires patience and persistence. Investors get busy or distracted. Markets change quickly. And in this environment, it can take many months to secure funding. Keep refining your pitch, networking, and seeking opportunities to showcase your startup (hint: Cherub is a great place to start).
Even if they've passed, don't be afraid to follow up with investors. Keep them informed of your progress and any significant milestones you achieve. By demonstrating your growth and success, you show investors that you are serious about your venture and that their initial 'no' may have been premature.
Airbnb
In its early days, Airbnb faced rejection from numerous investors. However, the founders didn't give up. They used the feedback from rejections to refine their business model and presentation. Their persistence paid off, and they eventually secured funding, leading to the global success of Airbnb.
Pandora
Pandora, the popular music streaming platform, faced over 300 rejections before obtaining the funding that propelled it to become a multi-billion dollar company.
Angry Birds
The creators of Angry Birds experienced 51 failed game ideas before their big hit. With each rejection, they learned valuable lessons, improving their design and gameplay. This dedication to learning from rejection ultimately led to the creation of one of the most successful mobile games of all time.
The next time you hear a 'not interested' from an angel investor, remember that it's not a roadblock but a detour leading to future success. Learn, refine, build relationships, and keep pushing forward. Your 'yes' is just around the corner.
The main key to finding investors that align with your vision is matching with potential angels that are already looking for what you’re creating, and that’s where we come in to make it easy.
Join Cherub today and begin matching with strategic investment opportunities via our platform. If you haven't checked out your matches, fill out your profile today and see more potential opportunities come your way.