How come no one is funding me, while others are being funded?

Listening is the new secret sauce of fundraising. Yes, I know all along you thought it was pitching!

Following the collapse of #KUNE foods, I am seeing some online and offline commentators with this know it all approach. They claim, without providing evidence - that the problem #KUNE Foods wanted to solve didn't exist, that they didn't do research, and that at USD2-3 meals are too expensive. These "experts" always have a rebuttal for other's opinions and are always trying to override them. One has accused me of "simping". They are nonchalantly using a 'race card', which is the idea that 'foreigners' use their skin color to raise money. They thus end up misdirecting their anger of inability to raise capital to the wrong people, instead, of being irked that African wealthy people and banks can't touch them with a 10 foot pole. They blame their failure to the success of others. And rhetorically, how do they expect to raise money from the same people the secretly detest. And since when did investors not have a choice as to where to invest? Often times, many people who fail to raise money don't have very good ideas, and experienced investors can smell this from afar. Many are unwilling to engage professional help from firms like PineHill Consulting (www.pinehillconsulting) to structure appropriate documentation and investment structures which is are pre-requisite for investment. A good idea is rarely enough.

I can usually tell entrepreneurs who will not be funded. They are usually deaf to what others are saying. Its usually very subtle, like using words like 'but', 'you don't understand', 'my business is different' or 'I have very unique insights that you and investors can't understand.' Its very common with solo entrepreneurs. According to an article by the respected medium.com, up to 80% of successful businesses are founded by teams (here). The co-founders usually have complimentary skills and listen to each other. This doesn't mean they never disagree. Remember, Steve Jobs was with Steve wozniak, Bill Gates co-founded Microsoft with Paul Allen, Google's Larry Page was with Sergey Brin and at FaceBook Mark Zuckerberg was with Eduardo Saverin and Dustin Moskovitz among others. Many investors don't fund solo entrepreneurs but this however doesn't mean a solo entrepreneur cannot succeed.

I see many startups with this 'know it all attitude' especially those by technical founders failing to close funding. They are usually drowning in their craft - like many IT geeks who live in an utopian world. While some complain all day long that funding is a reserve of 'white' owned businesses, the argument flies in the face of what is currently happening. Funding is alive and well in the African scene. See Naivas Supermarkets story, right off the press?bit.ly/3u0mN3t. And for avoidance of doubt, Naivas Supermarkets don't have white co-owners.

The difference with Naivas Supermarkets is their willingness to allow investors ideas-by giving them Board seats, not withstanding the fact that owners of Naivas are experts supermarkets business. When I fundraise, and I see someone who struggle to accept other's opinions, including mine- its a clear sign there will be problems down the line. My feedback is usually simple, don't invest or wait. It doesn't matter whether the investor's idea is crazy or not- one has to listen and then adjudge its merit. Listening usually exposes the entrepreneur's blind spots, and almost always improves the initial idea. Its usually a contraction that someone wants an investors money but doesn't what their ideas. Heck, even Lionel Messi, Serena William and Tiger Woods have coaches, and not forgetting the great players of Arsenal FC, many who have achieved way much more in their sport than their coaches!

In the entrepreneurship journey, the willingness to listen is simply gold dust!