Today, I'm going to talk about a difficult topic. Founders know that rejection is an inevitable part of fundraising, but it never feels good. You’ve likely heard the story of Airbnb’s founders getting rejected tons of times. But when the rubber hits the road, founders who have never gone through the process of fundraising don't know what it's going to feel like, how to protect against it, and how to actually draw strength from it.

The Stark Reality of Rejection

Of course the famous stories like Airbnb and others illustrate just how difficult fundraising can be and how much rejection occurs, even for the most well-known companies. But I think people can sometimes glaze over that and say “That’s just a dramatization of what it’s really like- it probably won’t be that bad.” It's easy to dismiss these stories as exaggerated, but they're actually pretty spot on. Any fundraising story you hear, successful or otherwise, has likely been paved with its fair share of rejection.

That’s because investing, especially in the earliest stages, involves betting on some pretty wild ideas. Often the startup ideas that finally get venture-backed are the ones that are most controversial- the ones very few will believe in at first, and get the most no’s. These are often the ideas which lead to the biggest outcomes. If you're aiming for a major breakthrough with your startup, you’re likely inviting a LOT of rejections.

What Rejection Really Offers

But here's the thing: rejection isn’t just calling your baby ugly and getting doors slammed in your face. It’s also a source of amazing feedback. Investors who've seen it all in your space can offer insights that are absolute gold. Each 'no' can give you a piece of advice or highlight a challenge you might face down the road. So think of every rejection as a chance to get valuable feedback that could steer your journey towards finding the right investors, those who really get your vision and are excited to support your ambition of building a gigantic business. Here are some of my tips for receiving feedback:

• First, not only be grateful, but actually feel grateful you're receiving any feedback. You earned the right to receive valuable information, something you can learn from, from an experienced person. Even if it's negative remind yourself this is a good thing.
• Next, maintain your self-confidence and belief in what you're doing. In the face of negative feedback, follow this line of thinking: "I believe i'm right, but what if they were right? What would that mean? How would I address that?" Ask clarifying questions to better understand!
• After fully listening, you can then file feedback away as a data point. Should that data point come up repeatedly, that might be an indication of something the market is concerned about and you should address.

Strategies to Handle Rejection

I won’t sugarcoat it- rejection is rough. It feels like a gut punch every single time, and it doesn't just magically hurt less the more you experience it. You have to find a way to deal with that pain because if you let it get to you, it will throw you off your game for the next investor meeting. If you start doubting whether your idea is really so great, it will erode your confidence and that’s something you can’t afford in fundraising.

One strategy I recommend is packing your initial pitch meetings tightly together- a strategy I call 'calendar density.' If your calendar is packed, you won’t have much time to dwell on the rejections. You move on to the next meeting right away, keeping your energy and morale up. Sure, the investor you just met may have said no- but there are a dozen more investors you’re talking to over the next few days. Their loss.

Also, build yourself a solid support system. Whether it's through positive affirmations, mantras, or just having access to friends, family, partners, etc. who remind you of who you are and how great you are is essential. Spend time outside of work. Play. Let yourself rest. All these things will keep you away from the spiral of fixating on rejection. It might sound a bit fluffy, but it truly makes a world of difference in how you handle rejection and show up to each subsequent meeting.

To prepare yourself, you can do something is as simple as practicing hearing difficult questions and rejection with a fellow founder, friend, or partner. This might sound silly but get someone to role play a rejection with you so you can practice staying calm and confident. We do a comprehensive version of this in our Adamant Fundraising program, but this is a great start.

Turning 'Nos' Into Fuel

Lastly, remember each 'no' is just one step closer to a 'yes.' It’s a cliché because it’s true. I find it extremely helpful to use investor feedback to identify the things in your story they don't believe. If they didn't believe something, what can you do to change that... either in how you communicated or with the examples you shared? Focusing here can be a massive unlock in your pitch.

Every rejection is an opportunity to refine your pitch, strengthen your resolve, and get you closer to the funding you need. Keep at it, learn from each interaction, and stay focused. That’s how you turn the sting of rejection into the fuel for your success.

Be chased,
Jason