Fundraising, Entrepreneurship and Mental Health

Being an entrepreneur is hard, and raising money from investors makes it harder. The experience creates certain expectations about how quickly you’ll grow, which may be a cause for demotivation if these are not met. 

In fact, most founders say fundraising is the most painful thing they’ve ever done. According to data from the US Census Bureau, 77% of entrepreneurs use an estimated $10,000 of their own money as startup capital at the very beginning of their startup journey, while two fifths (41%) were funded by a loan or line of credit.

According to Jan Lederman, director at Valhalla Private Capital, entrepreneurs should expect to do upwards of 50 pitches in their search for funding. However, regardless of success, the transition from startup to business is not a linear path and the high risk factor can take a toll on your mental health. This is an understated issue among entrepreneurs as founders want to appear as successful without expanding on the pitfalls they encountered along the way. 

A 2019 study by the Canadian Mental Health Association revealed that mental health issues affected nearly half (46%) of participants’ ability to work, while more than a fifth (21%) of entrepreneurs felt satisfied with their mental health less than once a week.

For this reason, it is important to have a community of like-minded entrepreneurs – including mentors and advisors – which you can network with to make the experience a little less daunting.

If you are struggling with your mental health, the Canadian Mental Health Association is a nationwide organization that promotes mental health and supports people recovering from mental illness.

Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page

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