Why Entrepreneurs Struggle Raising Their First Round of Venture Capital
“That was one of the best presentations I’ve heard in a while,” the VC said. “You’ve clearly got something special here.”
“Thanks!” I responded. My first company was participating in a startup accelerator, and I was wrapping up a meeting with a VC I’d been connected to through the program. I’d never raised capital before, and, to that point, I’d been unsuccessfully fundraising for a while. But my skills were improving, and I felt like I was getting closer to success. I was hunting for my lead investor (back when I thought that was a real thing), knew I’d just nailed my pitch, and I was feeling increasingly confident this guy might be it. It was time for the big “ask.”
“So,” I continued, “We’re looking to raise about $1.5 million. How much would you want to invest and what kind of terms are you looking for?”
“Oh, I’m sorry,” he replied. “I’m going to have to pass. The company isn’t a good fit for me.”
“I don’t understand,” I said. “You literally just told me it was one of the best presentations you’d seen and that we’re clearly working on something special. What more could you possibly want from an investment? Isn’t your goal to find great founders working on great companies?”
