No one makes a hole-in-one on their first try.  If you are an entrepreneur with a great business idea seeking venture capital (VC) financing, don’t be discouraged if the first VC firm you pitch turns you down. 

Rejection is one of those facts of life that everyone must face.  And most any entrepreneur will know first-hand about rejection and failure.  However, the best entrepreneurs will pick themselves off the ground, brush off the dirt, and continue the journey.  That’s resilience.

One of the most famous stories of resilience is Donald Trump.  After becoming the biggest real estate mogul in the 1980s, he swiftly fell back to Earth when he and his holdings went bankrupt.  But through determined resiliency, an optimistic outlook, and a well-planned strategy, he re-emerged again as the top real estate developer in the world.

When it comes to securing capital from venture capitalists, what is the best way to handle rejection and move on to the next opportunity?

Ask for Helpful Criticism

If you are turned down by a VC firm, don’t be afraid to ask the reason.  It could be just that they are looking for a different type of industry to invest in, but they may offer constructive help about your business plan, your pitch, your strategy, etc.  Accept any criticism not as a put-down, but as an opportunity to improve your pitch for the next venture capital firm.

Be Flexible and Adaptable

If you, as an entrepreneur, will succeed, you must accept that your way may not be the only way.  This is true for any industry.  For example, when making a feature film, actors must be flexible with direction.  Directors are flexible with producers.  And producers need to be flexible with financiers.  A feature film is a collaborative effort, just like any other business endeavor with third-party financing. 

Remember that if you are asking for a large investment from a VC firm, they will want to have a say in making sure both you and they profit from the venture.

Galvanize Your Determination

If you have experienced setbacks with obtaining VC funding, you must be more determined than ever if you want to succeed.  The famous novelist John Grisham tried to sell his first novel through 15 publishers and 30 agents.  All rejected his fictional crime story.  He was determined, however, and went on to self-publish his first novel, A Time To Kill, and he has since become one of the leading best selling thriller authors in America.  If he had become dejected after his rejections, we would not have the joy of reading his page-turning legal thrillers.

Never accept rejection.  Rejection is simply one person’s or one VC firm’s opinion.  If you believe in your business idea, then you will find the right VC to help finance your successful venture. 

Tags: angel investor, angel investors, Find funding, startup funding, vc marketing plan, venture capital, Venture Capitalist

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