What is Venture Capital & How to Fundraise Without Losing Your Head
Venture capital is a type of startup funding that comes from investors, banks, and various other financial institutions. It’s notoriously difficult to raise capital and most sources will tell you that it takes a lot of patience and perseverance to get a yes from investors. However, there are some oft-overlooked dangers in the fundraising process that pose a threat to first time founders and serial entrepreneurs alike.
Studies show that raising capital is one of the most stressful aspects of starting a business, and tends to leave most entrepreneurs physically and emotionally drained. This depletion can lower performance and morale, not only within the founder, but company-wide as well. Company culture is defined by its founder(s), and if leadership is running on empty, everyone around them feels the impact.
Consider too that raising venture capital has arguably become more difficult as a result of the turbulent economic climate of COVID-19. This would suggest that the mental health pressures fundraising founders were facing before the pandemic have likely increased exponentially, combined with more fear and uncertainty across industries.
When we’re under extreme stress, we’re more likely to become disorganized and forgetful, which can lead to bad decision making at a time when a founder’s mind needs to be at its clearest to ensure the future success of the business. That means that the pressures of fundraising can make or break your business. Imagine showing up for the big pitch meeting, standing in front of a venture capital team that wants to support your business, and forgetting everything you planned to say.
Being aware of your current mindstate is the first step in figuring out how to improve it. After all, we track performance metrics within our businesses, why not give our mental health performance the same consideration? That’s why Founders First created the first ever mental health and performance grader - to help entrepreneurs easily track and improve the performance of their minds so they can bring the best version of themselves to work every day.
Once you understand your current mindstate, you can use Founders First’s simple tools and recommendations to support your mind in areas where it may be depleted. When you complete the mental health and performance grader, you’ll be given guidance on the exact tools and techniques to use in order to optimize your grade which improves your ability to perform. For example, if you’re reporting increased levels of anxiety one day, we may recommend the ten clearing breaths tool to help you return to a state of calm.
The fact of the matter is that being an entrepreneur is stressful no matter what. But trying to raise venture capital is often when we feel the most pressure to succeed. A lot relies on us gaining funding, and it can be incredibly difficult to carry that weight on our own without a venture capital partner.
Learning how to manage the stress of fundraising from venture capitalists could mean the difference between success and failure. The Founders First app ensures that you keep your mental health and personal performance a priority which gives you the best chance at success.
You can try the Founders First app free for seven days to see how tracking and improving your mind gives you the competitive edge you need during a stressful time in your business. Join over 3,000 entrepreneurs who have prioritized their mental health and performance so they can live happier lives while building their businesses and changing the world.
Join the Community
Founders First is a set of evaluation tools that will improve your business by strengthening its most critical asset: You.
Are You An Entrepreneur Struggling with the Personal Impacts of Stress?
Let us show you a revolutionary program that’s transforming the lives of entrepreneurs just like you.
Join the Community
Founders First is a set of evaluation tools that will improve your business by strengthening its most critical asset: You.
Founders Forum is a live show where we talk about mental health in entrepreneurship and how to build resilience to stay stronger, happier, and be more successful.
