Maybe Startup Fundraising is Supposed to Suck

Nearly every founder loathes the fundraising process. We don’t hate the outcome of receiving cash in our company’s bank account to fuel our hopes and dreams, and we don’t hate the individual investors with whom we meet along the way, but the grind of a startup fundraise is draining, distracting, and just kind of sucks.

Navigating the Challenges 

Finding warm intros to VCs, getting pushed down from partners to associates or analysts, maintaining sanity in the face of consistent rejection and negative market feedback. None of this is easy nor enjoyable. When I get together with other founders, inevitably we end up half-joking/half-commiserating about the ridiculousness of it all. But perhaps this is by design.

The Reality Beyond Fundraising 

In the scheme of all the challenges a startup founder will face, especially after raising venture capital, the fundraising process itself doesn’t even touch the really hard stuff: Hustling to sell to customers; hiring, inspiring, retaining, and in some cases, downsizing our team; keeping our heads in the game for the years-long journey ahead; solving a problem with multiple intractable, seemingly incompatible but mandatory inputs, and more.

The Investor's Perspective 

I don’t think it’s crazy to think that investors keep the process as it is in order to filter out the founders who can’t solve the problems and overcome the challenges inherent in the process. I mean, if a founder can’t figure out how to raise their round, why would an investor believe that the founder can creatively and persistently do all of the other hard stuff after the checks clear the bank?

Rationalizing the Process 

Maybe I’m just framing the fundraising process in this way to rationalize the suck that founders feel. But there’s a reason why Navy SEAL BUD/S training has Hell Week, why medical residency programs have the hours that they do, and why states require law school graduates to pass a rigorous bar exam (RIP Kim Kardashian’s legal aspirations) – these organizations require their potential professionals to prove that they have what it takes to be successful before they’ll welcome you into the fold. Making it through the gauntlet certainly does not ensure that we’ll be successful, but I imagine the odds are a lot higher than for someone who could not make it past the institutional filters they faced.

Embracing the Challenge 

To wrap things up… Yes, startup fundraising is not a fun nor easy process. But if we approach it as an opportunity to demonstrate to potential investors our resolve, perseverance, and creativity, perhaps the shittiness of it all will be supplanted by the amazing outcome toward which we are all working.

Ready to take control of your financial future and join a community of like-minded founders? Contact us today to learn how Common Tide can help de-risk your entrepreneurial journey.