Thinking of Fundraising? Brace yourself for feedback!
Feedback when fundraising in real world can be equally brutal as it is on Shark Tank India!
Thanks to Shark Tank India, many people have begun learning about entrepreneurship and funding for startups from the comfort of their homes. But, there is a lot of criticism online on how difficult the sharks are being, how many starry-eyed entrepreneurs are walking away disappointed, and that in fact, it is not as bad in the real world. I beg to differ.
As an entrepreneur who started a legal tech startup when the term was not even coined and as a lawyer who on average works on 5–6 fundraising transactions a month, I can tell you that fundraising in the real world can be equally brutal. Everyone is talking about how the sharks are overtly rude with their feedback. But the reality is, the show has a lot in common with the real world than you think, and that is just how it is a lot of times.
As an entrepreneur, when you put yourself out there to ask people for money, you have to brace yourself for their opinion, which is not always sugar-coated. People who are potential investors try to pull out the strengths and weaknesses of each pitch, before deciding to invest. I was part of a similar setup a few months back, where I was on the jury of a spot funding event hosted by Encubay Angel Network and StrongHer Ventures, and the jury was equally candid and brutal(ly honest) with their feedback on either the idea or the execution or both.
People will give you their opinions on what they think about your startup, and how you can do it better and they are not always going to be nice about it. They may also not support you, if you don’t fit a certain perception of what works. When I created one of India’s first cap tables and ESOP management portals, many prominent investors told me that it would not work out. This was six years back. I would like to believe that I was too early for the market because three years later, the same investors invested in ESOP management tools.
I am not saying wear rose-tinted glasses and be deaf to criticism. Feedback, when starting up, is very important and you should take it seriously. All I am saying is, people will have opinions and may not sugar coat them when giving them to you. Just develop a thick skin. As entrepreneurs, we anyway cannot and are not supposed to be sensitive. Resilience is key for survival as an entrepreneur!
So, when fundraising, remember that the reality is if you want to grow, you need to develop extra layers of thick skin and accept the criticism with grace and maturity.
