When Investors Turn You Down

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors say no to most of the deals they see.

Founders should take 'no' in stride and do the following:

Review the deal for the risks the investors see.

Some investors worry about risks that don't exist, as they are not familiar enough with the company or the market.

Founders should show how they mitigate those risks anyway.

Founders can also review the valuation to see if it's out of market.

If only some investors have a problem with the valuation, then the founder can use warrants with those investors to help close the gap.

Founders can also review the business to see if all the values in the business are coming through on the pitch deck.

Finally, the founder should review the positioning of the startup.

There are many ways to position the deal so it is attractive to the investor.

Potential positionings include financial.

This shows how the business makes money and can scale to make a great deal of money.

Other positionings include impact.

This shows how the business is providing a community benefit.

Another position is the low-risk option.

This shows how the business is running a known business model, with a proven team that has already exhibited significant success.

Consider the valuation, the values in the business, and the positioning of your startup when the investors say no.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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