Why most startups struggle with fundraising?

Startups fail because of the difficult journey of fundraising.

Securing funds ranks as the second most challenging aspect of launching a startup, and the first is developing a product that appeals to consumers.

Investors evaluate startups the way customers evaluate products.

To get through it, you need a different set of skills. 

→ Start with low expectations. Fundraising often disappoints because it's harder than many founders anticipate. The market is unforgiving, and investors are unpredictable

→ Stay focused and try to allocate specific roles within your team, where one founder focuses on investors and the rest keep the startup progressing

→ Adopt a conservative approach. Assume fundraising could go poorly and accept reasonable offers when they come

→ Don't fix a specific amount of money to raise. Be open to adjusting your goals based on the interest level of investors

→ Make your startup attractive to investors and demonstrate resilience and financial discipline

→ Earn money by consulting work (if needed), but be careful not to let it take over your main business idea

→ Understand that rejection is part of the process. Use it as a learning opportunity to refine your pitch and strategy

→ New investors can be more trouble than they're worth because they get nervous easily. If you work with them, you might have to do a lot of the work to ensure everything goes smoothly

→ Don't waste too much time on someone who's not likely to invest. Focus on those who seem really interested

Focus, maintain morale, and secure the necessary capital to grow your startup. 

For more on this subject, check out Paul Graham’s article: https://paulgraham.com/fundraising.html