But just because your business pitch was rejected by a venture capitalist (VC) doesn't mean that your startup is doomed.
In fact, getting rejected can be a good thing. It can help you learn, grow, and become a stronger entrepreneur.
🧵
Here are three things to do when your business pitch is rejected by a VC:
1. Don't take it personally
It's easy to take rejection personally, but it's important to remember that it's not about you as a person. It's about your business pitch.
Maybe the VC didn't like your idea, or maybe they didn't think your startup was ready for investment.
Also remember, VCs are bombarded with pitches every day. They can't invest in all of them, so it's not surprising that most pitches are rejected.
2. Analyze the feedback
If a VC rejects your pitch, ask for feedback. They may be able to give you some valuable insights into what they didn't like about your idea. Was there anything that the VC said that you can use to improve your pitch?
Maybe they had some constructive criticism that can help you make your pitch more appealing to future investors. Use this feedback to improve your pitch and make it more appealing to future investors.
3. Keep pitching
Just because one VC rejects your pitch doesn't mean that all VCs will. So don't give up! Keep pitching your startup to different investors until you find someone who's interested in investing.
If you're having trouble finding VCs to pitch to, try attending startup events or networking with other entrepreneurs. You never know whom you'll meet and what opportunities will come from it.
Use rejection as a learning opportunity and with enough persistence, you'll find the right VC who's interested in investing in your idea.
As a VC focused on Africa, I often hear the same question, "Why would I invest in a tech startup in Africa when there are so many other opportunities that are less risky and more established?"
Here's my answer:
🧵
1. Africa is full of untapped potential. With a population of over 1.2B people, Africa is the world's 2nd most populous continent. By 2050, the population is projected to grow to 2.4B. This represents a huge opportunity for businesses that can tap into this growing market.
2. Africa is home to some of the world's fastest-growing economies. In recent years, African economies have been growing at a faster rate than any other region. This economic growth is creating a middle class with disposable income that is looking for new products and services.
As a 2x tech founder, I am very familiar with the challenges of raising funds for a startup. Over the past year, I’ve met with hundreds of African founders to share my expertise and invested in ten companies. Now I want to take it to the next level with the launch of our fund.
As a 506(c) filed, Ajim Capital Fund I is a $10M pre-seed/seed-stage fund that will provide funding to 60-80 industry-agnostic tech startups in Sub-Saharan Africa with typical check sizes of $25K to $150K. ajimcapital.com
Start-ups in #Africa have raised over $4.3 billion in 2021 according to Africa: The Big Deal through 818 $100k+ deals.
This is equivalent to an average raise of $1m every 2 hours and 2.5x times the amount that had been raised in 2020.
800+ #investors have been involved in at least one deal. 110 #startups have raised their first $1m+ round.
30 out of 54 countries recorded at least one $100k+ deal during the year, yet 81% of the funding was raised in one of the ‘Big Four’ (NG, ZA, EG & KE); start-ups in #Nigeria alone raised more than $1.5b.