Even though there seems to be a pattern when it comes to defining the qualities and traits that investors look for in entrepreneurs, it is important to note that all of the investors have unique approach, which they have built through the years of experience. Investors often point out the essential elements that they look for in a startup – the team, the market share, traction, the list goes on and on, – but you will rarely hear them say the thing that we all know they need to be sure of before they agree to write you a check – will this investment make them money! There might be many reasons why you did not get funding for your startup and here you will find five of the most common reasons for this unpleasant fact.

Are you all in?

Every entrepreneur starts their venture with the idea that they will succeed. Confidence is important and the lack of it is easily noticed by investors, which raises the question: Why would anyone invest in your company, if you yourself don’t believe in it strong enough to be all in? Investors must be sure that you have put all of your time and effort (and money) into the business, that you embrace the risk of being an entrepreneur, before they decide to include your company in their portfolio and, most importantly, to write you a check for it.

You lack passion

If an entrepreneur lacks passion for their business, it is impossible to make people trust in their ability to build a strong company. Entrepreneurship requires full devotion. It takes all of your time and attention. So if you are not passionate enough, you will be easily distracted and once you lose focus, you lose your direction. Investors need to know that you are passionate enough in order to trust you with their time and money.

Weak team

Investors believe in strong teams more than they believe in ideas. You have probably noticed that they tend to always ask you about your team when you pitch. If your team is not strong enough, it might be one of the main reasons why you don’t receive funding for your company. It is important that you spend enough time building strong team as much as it is important that you spend enough time building strong product.

Unrealistic expectations

Investors don’t trust entrepreneurs, who have unrealistic expectations about the future and the potential of their companies. You should know your numbers before you meet with the investors and should be ready to give data-supported answers to their questions.

Bad approach

You may have the best business plan possible, but if you are unable to present your company in the right way in front of the investors through your pitch, they may never even get to read your business plan. Pitching is the most essential non-business element of every startup and you should master the art of pitching through practice and experience, because a bad pitch is often the reason why startups don’t get funded.