Pre-seed and Seed founders, anytime a VC turns you down for any other reason than: 1. They don’t believe in you. 2. The deal is nuts. (Price). They are lying or just bad investors. Don’t take it personally, move on. #Founder #funding #business #investing #vc #venturecapital #entrepreneur #startup
Hello Harry Stebbings - what about a fee other reasons: - this opportunity does not fit my investment thesis? - the initial output / operations / production / tech capabilities appear to be weak? - competition brings sudden innovation disrupting the opportunity and its moat? - the regulatory framework is changing or will change soon? - we believe in you but there is only... you? - we lack conviction in the product or service proposed?
Or they can't share material information, and still believe in you. 💚
What about angel investors who tell you they want to see growing MRR (PMF) before they invest at a valuation of less than $1 million? We have plenty of them here
I am Ceo of couple of compnay in 🇬🇪 but bcs of political issues and population it is hard to go ⬆️ fast sometimes it takes years for that reason decided go in usa for vc fund. for now had made game changing iot system for equipment and energy saving but from my country nobody from vc or angels response to answer, when i was for reaserch in us everybody supported. so wth is happening 😀. btw if anybody have interest we can share some data
True. But there are a couple more: 3. They don’t have much money left in the fund because they burnt most of it on NFTs and early Chatbot-wrappers but are too embarrassed to admit it. 4. They invested big in a competitor with subpar technology recently and are afraid you will make that investment worthless.
They are looking 2:30 minutes on a deck. The 3 main reasons - also they can’t judge more from the deck: 1. team lacks crucial skills: although they say they can help hiring, it is not their main job to run companies. Complete Teams win over incomplete teams. 2. not their sweet spot eg they are crowdinvestors and you are too contrarian - can’t do anything about it. When the crowd thinks cleantech is hip and all they want is cleantech, well… 3. no clear dealstructure - price among roadmap but some fussy dependent on the money you give and the direction you set…
Having the perfect founder doesn’t overcome every timing/fit issue. It should, and very good investors will find a way to make it happen, but in practice it doesn’t always work out that way.
There is always a way when one door is closed another will open somewhere, good point.
Or it doesn’t fit their fund thesis/mandate.
Disagree, as there are plenty more reasons. But I guess, Harry, you don’t really care, which is fine.