Why 99% of Entrepreneurs Face Rejection and How to Overcome It

I publish this series to discuss the nuances of bootstrapped entrepreneurship. Please subscribe to my Best of Bootstrapping series to never miss an article and?learn what to expect from 1Mby1M .

Let’s start with a quote from Marc Andreessen:

“At our venture capital firm we only invest in a sort of Silicon Valley–style tech. We see 3,000 inbound deals a year. And those are inbound and coming through our referral network, so those are sort of prequalified. We can do maybe 15 or 20 investments out of the 3,000 a year. So I like to say our day job is crushing entrepreneurs’ hopes and dreams. Our main skill is saying no, and getting people to not hate us.” Source:?Inside the mind of Marc Andreessen – Fortune Management

I run One Million by One Million (1Mby1M), a global virtual accelerator for startups. 2023 is our thirteenth year supporting entrepreneurs.

Thousands upon thousands of entrepreneurs have approached us for help with their funding at a stage where their chances of getting funding is ZERO. We can’t help them, regardless of how powerful our investor connections are. We can’t help a startup get funding before they become fundable. It pains me to see how many entrepreneurs have no idea what makes a startup fundable.

You’ve often heard me say that over 99% of the entrepreneurs who seek financing are rejected. This post offers a set of rejection statistics culled from credible sources on some of the key players:

Y Combinator: 97.15% [Source:?The Economist]

AngelList: 98.8% [Source:?The Economist]

Andreessen Horowitz: 99.3% [Source: Fortune]

If you get rejected by Accelerators, Angels or VCs, and they don’t tell you why, you need to understand the objections and the analysis that led them to their decision. Most good investors take the time to explain. Also, there are some fairly standard reasons why entrepreneurs get rejected by investors.

So, my humble advice to all entrepreneurs: please learn to assess your own probability of getting funded. Watching this 2 minutes 53 second video would be a very good start if you need a crash course in fundability.

Want introductions to Angels and VCs? A fundable and validated business is a must.

A fundable business with warm introductions is the fastest way to get funded. We can introduce you to angels and VCs, if your idea is fundable and validated. Sadly, less than 1% of businesses are fundable. What that means is more than 99% of the entrepreneurs waste their energy on pitching their unfundable businesses to investors. Hugely unproductive and unhealthy.

There is a reason why savvy entrepreneurs have been using the?Bootstrap First, Raise Money Later?strategy.

Generation after generation of entrepreneurs have used?bootstrapping?to get to a fundable stage, so they can call the shots at the negotiation table with their potential investors.

I have nothing against funding. I have scores of friends who are investors and I respect their work.

But my heart belongs to entrepreneurs who are capable of doing the heavy lifting of extensive validation. That’s where we can add the most value and that’s why we are in the trenches with those true entrepreneurs every day.

Looking For Some Hands-On Advice?

For entrepreneurs who want to discuss their specific businesses with me, I’m very happy to assess your situation during my free online?1Mby1M Roundtables , held almost every week. You can also check out our free?Bootstrapping Course , our?Udemy courses ,?YouTube channel ,?podcast interviews ?with VCs and Founders, and, to?follow my writings, click "Follow" from?here .