📺 Stream EntrepreneurTV for Free 📺

You did not get funded? Congratulations! Money never hurts. More money comes with more investors to manage and exits to worry about in the long run.

By Saumil Majmudar

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


Have been thinking whether not getting funded is a good thing or a bad thing?

Mike Tyson once said, "Everybody has a plan........until they get punched in the face."

The key question is not how to avoid getting punched in the face. That will keep happening. The key question is what you do after you have got punched in the face. Do you get knocked out? Do you quit the fight? Do you get stronger and fight harder?

Money never hurts. More money comes with more investors to manage and exits to worry about in the long run - but in the short to medium term, it definitely makes it easy for the team to execute on their plans. Hopefully, the plans are in the right direction.

But what about less money or no money?

Assuming that you took care of all the hygiene factors (good product, team, customers, model, professionalism, ethics, etc.), here's why I think you should be happy you did not get funded:

1. Funding is not equal to validation

The folks managing funds don't know the future. (Surprise, Surprise!). Very often, getting funded is seen as a validation of the business model and hence, an early sign of potential success. Yes, it can be.

But it is not the only source of validation. And the absence of funding does not mean the absence of validation. The best validation is from customers. And from team members who stay on to fight the battle even if you don't get funding. Or finally, if deep inside you, you feel it still makes sense.

2. It makes you more focused

There are two options if you don't get funded. Shut down or Keep Going. Assuming you keep going, the absence of funding makes you more focused - on your customers, on your team, on what is working in your business. When you don't have money, decision making is also very easy. If any internal project needs money, the answer is "NO!", but it turns out that in most cases, the team goes out and gets it done anyway - without money.

3. It makes you turn profitable

Hey! It's not like you have much of a choice, do you? Either shut shop or turn profitable. Option 1: Not an option, Move to Option 2., Change strategy, "Pivot", Cut costs, Fire bad customers, Fire high-cost and low-performing team members, focus on good margins, keep good customers happy, and collect money on time, etc. All good stuff!

4. You realise that you are fine without funding!

You realise that customers are still buying, the team is focused and the business is growing. Yes, there's stress on the system - but they can be managed with a lot less capital and some attention. And this builds the quiet confidence inside you that you can keep this going and growing - and do what you feel is the right thing to do for your customers and your team - instead of worrying about what investors think.

5. Some of the best businesses didn't raised Venture/PE funding

They took their time and grew organically. Many of them tried to raise venture/PE capital and failed multiple times. So, conversely, if you did not get funded, you could qualify for this league.

So, again – You did not get funded? Congratulations!

Good luck riding the punches!

Saumil Majmudar

Co-founder & Managing Director, EduSports

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."


Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.


5 Ways Solopreneurs Can Scale Their Business Through Collaboration

Our culture loves to perpetuate the myth that entrepreneurs must go it alone. But for many, the path to success is found in collaboration.

News and Trends

Supply Chain Startup 3SC Bags USD 4 Mn in a New Funding Round from GEF Capital

With the raised funds, the Gurugram-based platform aims to fuel the company's growth trajectory and strategic expansion plans.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.