18 Mar, 2015 | rejection, investor rejection, accelerator rejection
"The exclusivity of any university, is judged primarily by the amount of students it rejects." - Dean Richard Van Horne, Harmon College (Accepted, 2006)
Well, this applies to everything and everyone. Let it be start-up accelerators, venture capitalists, or bank credit, rejection is what people face most of the time. And it can be such a b*tch.
Ok, just to cheer you up, Pandora got rejected around 300 times and is still surviving.
Tara Hunt says, entrepreneurs are a combination of being delusional, audacity and status quo changers. Audacity... may not be to the extent of Pandora, but it's kinda true for most entrpreneurs.
You'll find it incredibly difficult to raise money without having actually done anything about your idea. Do you have a prototype? Any customers? Have you done market testing?
Investors/Accelerators have so many teams pitching them by the minute, it's hard to convince them to invest their money in just an idea. They would rather put that money into a team that has already done something about the idea. Be warn, some investors are really sharks. They only care about money, because only money can buy money. So don't expect them to fund because your business is for a "noble" cause.
Because of "sharks", accelerators/incubators come into play to leverage the risk. You get to grow your business before approaching an investor. Typically, most accelerators/incubators offer a platform for networking with investors, mentors and co-founders with whom you can work to develop your idea. But they seldom offer a platform to reach out to the end users of your product.
You can get an A grade on your project from experts, but at the end of the day the customers are your boss, and investors will not help you escape from the boss's rage when you do something wrong.
So the best way to get on the good side with the boss, is to include him/her when you do the actual work. Tell me, who doesn't like to be in the spotlight?
Image Courtesy : Online Forzest
Further reading :
So you want to do a startup eh?
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