I run One Million by One Million (1M/1M) - a global virtual accelerator for startups. 2017 is our seventh year. And one particular trend keeps me awake at night. 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.
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.
Photo credit: goodmami/Flickr.com.