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Focus – Getting a no in capital raising

  • Published December 20, 2022 4:08AM UTC
  • Publisher Callum Melrose
  • Categories Capital Raising Tips

“No” is not the word most #startup founders want to hear when they’re trying to raise money. But the truth is, it’s a word you’re going to hear a lot. And it’s not necessarily a bad thing.

The thing is, when you’re trying to raise money for your startup, you’re going to have to pitch a lot of people. And not everyone is going to be interested. In fact, most people will say no.

That’s okay.

Here’s what you need to do to make sure that doesn’t put a damper on your startup:

1. Understand why people might say no.

When someone says no, they’re not necessarily saying bad things about your startup. They may just be busy or didn’t see the potential of your idea, or the opportunity just wasn’t the right fit for them. You need to understand why they said no so you can adjust your pitch accordingly.

2. Be prepared for rejection and know how to take it gracefully.

Rejection is a part of #fundraising and it’s something you’re going to have to deal with. But don’t let it get you down. Instead, learn how to take rejection gracefully and use it as a learning opportunity. It is what you do with the no that takes this to the next level. 

3. Don’t be discouraged by rejections – they’re part of the process.

If you keep trying, you will find investors that will say yes to your startup idea. Ultimately you can break the process down into a numbers game, following a typical sales and marketing approach. Even if people say no right away, that doesn’t mean they won’t eventually invest. We have seen investors follow a business for 2 years before committing to an investment. 

Stay positive and don’t be discouraged by rejections – they’re part of the fundraising process. It just means you need to tweak your pitch or find a different investor.

Looking for a platform to raise capital? Click here to discover how Wholesale Investor can help you.

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With a 14-year track record, a network of 32,000+ investors, and a capital raising platform, Wholesale investor is a leading investment platform for start-ups, scale-ups, emerging growth companies, and small caps.

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