Why rejection is the best startup development strategy

The start of a recent company resembles the introduction of a ship into the open sea. You have invested your heart, time and resources in the idea, hoping that it not only floats, but also will conquer the vast ocean of possibilities. However, the first control of reality often has the type of rejecting investors. This moment reveals that not everyone shares your confidence.

So how do you understand rejection, learn from this and why is this one of the Most worthy growth phases for each startup?

Rejection is a part of the game

Let’s start with the fact: About 90% of startups fail. This terrifying character mustn’t depress you; It ought to be directed to grasp that this is a comprehensive normal phenomenon. Not all Venture funds comply with your project, and your project may not at all times match their expectations.

Each fund has its own strategy. Some are looking for startups that already generate revenues, while others prefer to work at the earliest stages. Some determine the priorities of the founder’s experience, while others are ready to offer a probability to a newcomer. Even a very promising project may currently not match the fund’s investment strategy.

For example, I once worked with a founder who put a huge effort into presenting his idea. The project had potential, but the goal market was too narrow. Our fund refused the opportunity, which, comprehensible, upset the founder. However, they constructively took feedback, converted their strategy and identified a wider market. Today, their startup blooms, and rejection has turn out to be a key lesson.

Why rejection seems personal

It hurts “no”, especially after putting all the things in the project. It’s almost like a personal attack.

But the truth is that rejection is not about you. It often reflects the market conditions or the fund’s strategy. The investor may fall because their portfolio already includes similar projects or saw how comparable startups fail. Sometimes the fund is absent for this 12 months or your project was not in line with their plans.

In addition, it is essential to keep in mind that rejection is a business decision, not an try and diminish or defamate. Responding angrily sends improper signals to investors, because it is a business; There is no room for emotions. I used to receive E -Mail from the founder accusing our Fund for injustice. This answer revealed the inability to deal with criticism, increasing the concerns about their emotional immunity and leadership characteristics.

Emotional immunity

This is an emotional mountain queue; One praises heavily and the other simply ridiculed. Rejection is only a part of this dynamics. The founders are successful are those that can withstand emotional pressure and use it as motivation to develop.

Investors are looking not only for ideas, but also leaders. They need to see individuals who might be composed in difficult situations. Of course, crises occur, and during them the founder should reveal his ability without being a completely emotional mountain queue.

How to reply to rejection

Each rejection is an opportunity to research. Instead of disappointing, ask yourself:

• What may very well be improved in your presentation?
• Did the investor understand your value?
• Have you provided enough data to strengthen your case?

I’m a big fan of recommendation to ask investors for opinions after rejection. Such opinions can assist you understand what to do next time you meet them. Even if the investor does not provide specific details, disappointment with comments would indicate a more positive approach to the future path.

In my practice, I have seen many cases in which rejection became a turning point. Take, for example, one case, and the project underwent some rejection before eventually met an investor who found him worthwhile enough. The rejection then made the band look back at their goal market and strategy to the market, and ultimately this startup now works on a scale that he never imagined.

On the contrary, I saw how many founders express their anger or disappointment with such monuments that are in themselves a red flag. If someone cannot cope with rejection, it raises questions about their ability to look more significant challenges.

Why learn from rejecting, it matters

Each rejection helps to discover weak points in your approach. This is an opportunity to ask key questions:

• Do you understand your audience?
• Do you clearly communicate your value?
• Do you strengthen your team?

Rejection might be a powerful tool for self -reflection and planning subsequent steps. They offer worthwhile observations that may shape the founder’s approach to future challenges. For example, rejection often prompts the founders to develop emotional immunity, learn to bounce and focus on their goals. They also encourage the ability to constructively accept criticism, use feedback to enhance the strategy, improve products and improve team performance.

Each aspect of each rejection should turn out to be an opportunity to learn and improve. The moment when you perceive rejection as fuel for your height is the moment when you strengthen yourself as an entrepreneur. Investors are not only looking for sensible ideas, but individuals who can transform these ideas into successful ventures. Showing that you may deal with adversity, it becomes your competitive advantage.

Rejection, remember, by no means is the final path. It’s a part of the trip. Learn and develop, and watch how “no” turns into “yes”.