VCs on average invest in less than 1 % of the dealflow they are introduced to. As such, it is inevitable that they, more often than not, turn down your offer to invest in your company after spending an average of 30 seconds on each of your slides.
Should you nevertheless be heartbroken or feel hurt when an investor sends you a resounding NO?
Well, it depends!
Firstly, ask yourself if you’ve done your homework when targeting investors – maybe go back to our tip N°3 “Knowing your investors”.
If so, you may still fall short of your target as the investor world is ever changing – funds close, thesis vary, people change positions ...
Secondly: Congratulate yourself and thank the investor for giving you an answer as there is nothing worse than being completely ignored and being stuck in limbo. Simply tell yourself that this is one less investor to have on your “hope” list and move along …
Thirdly: the more you brace yourself to the endless possibilities of refusal, the less it hurts.
Below I’ve listed some of the most common reasons we’ve come across over the years and those of course are the voiced one. We’ll leave aside all the others: arrogance of the CEO, bad presentation, no figures etc
Lastly: All this will make the upcoming YES so much more satisfying as if you’ve reached the K2 summit in winter (at least I imagine it to be hugely satisfying!) so smile and pursue your quest for the right investor