"Enough BS—tell me what you really think!" (Every founder after receiving a 'pass' from an investor) The feedback founders receive from investors is often generic, sugar-coated, and unfortunately, not very helpful. Investor decisions are influenced by a web of micro data points and impressions. Some are straightforward, like market opportunity or traction. Others are subtle and instinctive, formed in the back of their minds. Getting honest feedback can help you identify the gaps in your venture and come better prepared for your next investor meeting. Ask for the unfiltered truth! [Queensland founders—this is exactly what the 77 Venture Challenge is all about, and it’s free. Check out the link in the comments below!] #founder #entrepreneur #startup #venturecapital #vc #ycombinator
Few months ago I applied to 165 ventures all over USA and cookie cutter feedback is all I got. I was and still am building agentic way of filling the cybersecurity gaps in enterprise BEFORE Ai agents was a thing. Standard feedback were: “you are too early”, “we only invest in pre—seed startups”(then who am I pre-pre-seed?) “Are you or any of your cofounders from Ivy leagues?” “We only support SF based startups” “We need 3-5 cofounders on board before we can fund you” Then I read Paul Graham’s essay that most of investors have never created their own business, they are just trying to manage someone else’s money, so of course they are following a cookie cutter feedback because they haven’t lived any struggles of a startup. Investors need to INVEST in startups either with their money or through their feedback. Imagine if a founder got 165/165 critical feedback on their pitch, website, product demo, vision or anything, it’s worth more than money.
Hey whilst I’m out raising and it is of course important, it is a two way street, investor - founder fit is also important… if they ain’t on our vibe, they ain’t our tribe and so I’ve started to not get disheartened at a pass. I’d love deeper feedback at times but also I think sometimes it isn’t given in case it fuels a much longer conversation when they just want to pass and so I get it. But I agree Yotam Rosenbaum, better feedback would make us and the investors have better deals on a macro level. It would be awesome if there was some kind of one pager as a standard if you’ve had say your first meeting to give just on or two actual reasons for a pass to distinguish between the micro-learnings and personality decisions and which ones where useful to the founder to address or just to know. Everything ain’t for everybody…. but if we can be helpful to each other, we’ll all be better for it.
It's much easier to get that honest feedback if you seek it outside of a pitch. A pitch is a transactional event. They are interested or not. The dynamic there isn't to teach you and help you learn. Generally speaking: The dynamic is you wanted their money and they don't want to give it to you. They are in a situation where they don't want to upset you more than saying no does. If you want feedback on your pitch, seek out investors as mentors. Ask for feedback on your pitch deck and presentation. This creates a situation where the entire purpose is to help you learn and grow. They feel less conflict and confrontation in this dynamic than a pitch for their money. They are more likely to be honest. That's the entire purpose of this engagement, unlike a pitch. You can seek out investors in this manner at any time. Well before you feel ready to pitch. You can use this to foster authentic relationships with investors. You also are pitching them without pitching them while demonstrating to them your quality of character, methodologies, and how you assess and overcome challenges--among other things. This is more true if you're rushing out there to cold pitch without any established relationship with them or or those they trust.
My advice to founders is to dissect the questions the investors asked and the ones they didn't. And move on quickly by keeping a full pipeline - Sometimes feedback is less substantive than it is "shoot from the hip." too many opinions can spoil a raise. Death by 1000 suggestions - If they didn't invest. They're just not that into you. Find who is.
Clear, timely, honest information delivered with kindness - if everyone communicated this way it would be a better world.
Yotam Rosenbaum too many startups are failing because of lack of proper guidance and more get lost in the madness and noise. EmployerEase is committed to empowering anyone, (especially startups) with a new path to starting a business. Our platform will guide those with the idea to formation to growth by empowering Founders with the tools they need to succeed. Imagine a platform built so you can build "Your" business.
Finance YCombinator does not give feedback on failed applications. You might want to look into this since the application process takes several hours and your post suggest your company would provide feedback. Even a score card would be helpful.
This is such a crucial point—honest feedback is often the missing ingredient for founders to truly refine their ventures and make stronger pitches. At Ceylon Equity Exchange, we emphasize transparency in every interaction, ensuring that businesses and investors alike can make well-informed decisions. Kudos to initiatives like the 77 Venture Challenge for fostering that kind of open dialogue. Looking forward to seeing more ventures thrive with this approach!
So true. You almost have to beg them to let it rip. … and the feedback is mostly disingenuous.
YC Founder, Mentor, Investor
2whttps://www.77partners.vc/challenge