I think that what I’m about to discuss is an important topic so I’m going to have a go at providing my view.
Some founders that I come across are either considering or actively working on raising capital in the U.S. largely due to perceptions of Australian investors been as overly conservative. I've personally grappled with this too. For years, I held a bit of an attitude of 'Fuck Aussie investors, they think too small,' but upon reflection, I have realised that this was more of a defence mechanism to cope with the rejection inherent in fundraising than truth.

Raising capital invariably results in more "no" responses than "yes," which inevitably dents our ego and zest for life and our business. It's tempting to direct the blame and frustration towards the Aussie VC and investor community as a coping mechanism. After all, founders often require an unwavering determination in the face of scepticism to persevere so this narrative keeps us battle hardened.
However, I encourage you to reconsider this narrative. Shifting your mindset will assist in fostering healthier dynamics with investors, potentially leading to stronger relationships and increased funding and ultimately company success.
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Check out some of my other Aussie founder focused fundraising articles:
Here are some reflections and reframes to help break free from this destructive pattern:
Firstly, you should reflect deeply on the type of company you're building, your vision, and how you aim to achieve it. Consider whether venture capital truly aligns with your goals, as there's a diverse array of investors beyond VCs. I strive to normalise alternative funding routes in order to empower founders to build their companies in alignment with their values and pace, VC is the loudest kid in the room but certainly not the only one (I wrote an article about it here).
Secondly, invest time in building relationships with investors well in advance of needing their support. Trust and conviction take time to cultivate. Trying to execute a capital raise at the same time as building initial relationships will result in a more transactional non-genuine foundation which will likely hinder your ability to secure funding. Ideally, you’d start investor relationships years in advance. Is it reasonable to ask for thousands and millions of dollars after just a couple of meetings? If you are the founder of a startup that requires external capital, then you are responsible for ensuring that you are strategically thinking years in advance for your capital requirements and doing what is needed today to secure that. Trust and conviction usually takes time to build. The wonderful Abhishek Maran just wrote an article on this topic here.
Rather than attributing the lack of investor interest to Australian investors' conservatism, consider factors such as that you not matching their mandates or that you may have ineffectively communicated your vision. Tailoring your approach to each investor and conducting thorough research before an investor meeting can significantly improve your chances of success.
Understand that rejection is not a reflection of your worth or potential; it's about alignment with the investor's preferences and criteria.
Sometimes, I remind founders that I work with or they need to remind me of the above when we might be passing the buck.
While venting frustrations is essential for processing experiences, please remember that rejection is a natural part of the innovation journey. Embrace scepticism as validation of your pioneering efforts.
However, I must acknowledge the elephant in the room which is that some can’t raise funding due to discrimination. Discrimination is never acceptable and we must continue to fight against it as it is a very real issue within our industry although beyond the scope of this article.
Ultimately, investors don't owe you anything, and vice versa. Accepting responsibility for your emotions and outcomes empowers you to navigate the fundraising landscape with resilience and integrity.
Getting angry at "VCs" is akin to directing frustration at a faceless entity.
This article aims to empower founders to overcome setbacks without succumbing to victimhood. You're on a challenging journey driven by passion and purpose. Not everyone will share your vision, and that's okay. Keep pushing forward; you’re doing great…. you've fucking got this!
Disclaimer: Excentricity Pty Ltd, trading as CapXcentric (ABN 42 679 978 959, AFS Representative No. 001311296) is a Corporate Authorised Representative of True Oak Investments Pty Ltd (ABN 81 002558 956, AFSL 238184). The information provided in this article is intended for companies and startups and is not directed towards investors. Any statements or representations are general information only and do not take into account your personal objectives, financial situation or needs. Readers are advised to have regard to their own circumstances and consider seeking specific advice from a professional adviser before making any business decisions. No representations are made as to the accuracy, completeness, or reliability of any information provided in this article. Readers use the information provided at their own risk.