As a founder, you've experienced investor passes - it's a normal part of the fundraising process. As you know, only 1% of start-ups raise funding. So you have to expect a “sorry, not now, but come back later” in 99 out of 100 cases. Even if you set your expectations correctly, it still sucks to get passes. So how can you deal with them and even use them to your advantage?

First and foremost, remember that passes can happen for a variety of reasons. It could be that your start-up just isn't ready yet, or that you need to work on your pitch and communication skills. Make sure to remove these concerns as fast as possible.

However, it will also take time for investors to build trust in you and investors may not be ready to invest in you before trust has been established. Trust is particularly important at the early stages because you have no traction data to rely on.

So, how can you show investors that you are a trustworthy and reliable investment? The key is to show that you consistently deliver results and exceed expectations. Highlight past successes in your pitch deck. Additionally, provide regular updates to investors that have passed on your current round.

This is where a monthly or quarterly newsletter is a great tool for you. By including key product and growth milestones, as well as other updates, you can demonstrate progress and keep investors informed, nurturing their trust in you. Some examples of what you could include are:

• Key product updates such as new features, case studies, and upcoming releases

• Growth metrics such as revenue, user numbers, NPS scores, retention figures, etc.

• Other updates such as key hires, office openings, exciting industry trends, links to press releases, and invitations to events

Of course, what you include in your newsletter will depend on your specific industry and business. And don't provide sensitive information that is only meant for your board and existing investors. But by providing regular updates and demonstrating progress, you build the trust that you can lean into later.

Remember, fundraising is a process, and it can take time to find the right investors. Don't be discouraged by passes - use them as an opportunity to improve and show investors what you're capable of.

Talk soon,

Rafael

PS: How do we help you? My team and I build pitch decks, review existing decks, and offer pitch simulations. Get in touch if you or someone you know may be interested.

PPS: This mini course is based on our popular “Fundraising & Pitch Deck” newsletter.