Should you be raising money for your startup? If you are looking for capital, what is the psychology behind fundraising?
Without a doubt, raising capital is one of the most critical decisions entrepreneurs need to make for their business. Bringing in the wrong investors could be fatal as divorcing an investor is harder than divorcing your own husband or wife.
Moreover, the process of fundraising itself is a roller-coaster of emotions. In the morning you may feel like you are on top of the world while in the evening you may feel like the world is coming to an end. Embracing the journey and not accepting a no for an answer is what separates those that succeed from the ones that fail.
Typically the rule of thumb is that for every YES you will be getting at least 100 NOs from all the investors that you will be meeting. The NOs range from 100 on the lower end to over 300 on the higher end based on the hundreds of financing that I have been involved with.
By mastering the psychology behind fundraising you will have full control over the process. This will give you an edge and a clear advantage in order to close the deal.
With that been said, below are the critical factors to understand the psychology behind fundraising before prepping that pitch deck and getting ready for investor meetings. Don’t forget to share with friends on social media!
