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Why Most Startup Fundraising Fails | by Chris Soschner | The Startup | Apr, 2025

April 5, 2025
in Startup
0
Home Startup


Nice concepts don’t die from rejection — they fade in pipelines that had been damaged from the beginning.

The Startup
Title Image Designed with ChatGPT

It begins the identical method each time. And this morning, Paul was no exception.

A founder, brimming with confidence, telling me:

“We’ve constructed one thing traders should love. It’s good. It’s quick. It’s environment friendly. A real game-changing expertise.”

He paused, ready for validation.

As a substitute, I performed my standard function — the crucial pal. I knew he wouldn’t love the twist.

So I requested the one query that often silences the room:

“Who truly wants it proper now, can write a test, and has the strain to maneuver quick?”

Paul froze. His smile light. Eyes huge, mouth half-open — he didn’t want to talk. I might already hear what he needed to say:

“How dare you query what we constructed — two years of sweat, in a storage, like MacGyver, armed with a pen, a whiteboard, and 4 a.m. espresso.”

They constructed the tech. However they by no means requested the laborious questions each investor-savvy thoughts asks earlier than breakfast:

What downside does this clear up?Who feels it proper now?Will they pay — instantly?

That’s when founders usually get defensive.

“You don’t get our science. You’re only a enterprise man.”

They usually’re proper. I’m not right here to audit their breakthroughs or chase the subsequent Nobel Prize.

I’m right here to ask the unglamorous questions that flip ardour initiatives into viable companies.

And in that second, I knew what Paul couldn’t see but:

He was pitching right into a black gap.

There’s a particular sort of ache most founders know — however hardly ever speak about.

Not rejection.

One thing worse.

Ghosting.



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