There’s actually a very straightforward way to figure out if it’s a “yes” or not. They teach it at Techstars and it’s so simple but it works.
It’s just two things:
- Ask
- Actively listen to the answer
That’s it! At the end of a meeting where it is possible they could be nearing a yes/no, ask them where they stand. “Where do you stand on this at the moment and are there any next steps”.
They may say some version of no, but often if they’re interested they’ll say something like this:
“We like this, we’re thinking about doing $250,000 in this round but want to dig in more. We’d like to introduce you to a potential customer and get their feedback”.
From there, you respond with actively listening like this: “So it sounds like you’re thinking about $250,000 pending due diligence with a potential customer or two. Anything else beyond that?”
And so on. At the end of that, you actually HAVE a version of yes. It may be “yes we’re in” but more likely it’s “we’re in for $250,000 pending thing 1,2,3 going well”. How many things are after the “pending” field determine whether it’s truly a commitment at all, a soft commitment, or a hard commitment.
Because commitments beget commitments, this is actually ultra important. If you continue to do this, you’ll eventually know what commitments you have which you can then share, because you’ve been extremely clear, with other prospects, which can help push the fundraiser forward.
The best VC’s do not make you do this, they tell you exactly where you stand at all times and how many steps they need to commit. However, if you’re in a situation where that isn’t happening, remember: ask, actively listen and respond, repeat.
