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The secret reason investors say no: they’re just not that into you.
- In venture capital, a common reason is the person you’re communicating with does not have enough influence on the investment committee to get your startup selected for investment.
- Sometimes it's because there is a lack of alignment with their fund’s stage and sector focus, but often, it's more because there are more promising startups in their review pipeline.
- Sometimes factions or powerful individuals on the investment committee will use their veto power to block deals involving a particular technology, business model, or market that they're sceptical about.
- Most investors will only very rarely tell you the real reason why they aren't interested in investing in your startup.
- They're just not that into your startup.
- Once figured out, it's best to focus on investing in startups solving problems one cares about, using tech one is interested in, for customers they care about.
- Sometimes the syndicate members won't be interested in a startup like yours, even if the syndicate managers are.
- We don't have all the capital in the world and a tiny fraction of the funding capacity of the tier one and two VC firms.
- There's absolutely nothing wrong with most of the startups that investors say no to for investment; they're just not doing something they can get passionate about.
- Investors need to be passionate enough to want to do a bunch of persuading to make the deal happen.
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