Many founders believe that once they secure a deal, everything will be easy, but often, the real work begins after the deal is made.

Magical thinking in startups refers to unrealistic expectations about success without a grounded plan, making it harder for founders to face reality. It is when you believe in unrealistic causes and effects, thinking that things not rooted in reality are true for you. For example, some founders think that if they pitch their startup to a prominent investor, they will instantly recognize its brilliance and offer support, which is a flawed mindset.

A common misconception among founders is that raising money will magically solve all their problems. They may believe that their investors will save them from failure, which leads to a lack of critical thinking and preparation for ongoing challenges.

Many founders extend their magical thinking to believe that funding comes from luck rather than understanding how the world truly works. They often think that if others got funded through luck, they can too, without studying the actual processes involved.

Every startup needs at least one miracle to succeed, as they often operate in non-obvious markets that require overcoming significant obstacles.

Founders often ignore the reality of their startup's potential failure, which is an uncomfortable truth to discuss.

Talking to an overly optimistic founder can initially be exciting, but as the conversation continues, you may become confused about their lack of tangible progress or insights.

Many founders mistakenly believe that fundraising is about more than just raising money to build a successful company, which can lead to misalignment with investor expectations.

Founders often underestimate their unique skills and the specific challenges of their startup, thinking that hiring experienced executives will solve their problems.