Investors said no for my startup, now what? | My notes from the YC video

  • The founders are the experts on the product the market
  • Everything founders are doing, they think about the product and customers day in and day out
  • So they shouldn’t get shaken by investor as they jst spent 30 minutes, it’s not the most engaged 30 minutes that they have spent.
  1. This investor is an expert and they are telling me the truth.
  2. They know things because they have a following on the Twitter and they tweet about this market all the time
  3. They worked at a company in this market at some time in the past
  4. They work at fancy fund X, therefore they know everything about what i’m doing and whatever they told me in the email must be the reason and the problem with my startup
  1. Not having a technical co-founder
  2. Having negative margins
  3. About to run out of money
  4. Building a non-software product (this investor likes to invest in softwares
  5. )
  6. company hasn’t grown much every time founder pitched again
  7. The product hasn’t been launched
  1. The market is too small
  2. Unit economics doesn’t make sense

Real whys

What are the reason reasons for which investors reject you and what are the ones you should pay attention to?

  1. While conversing, Investors didn’t see you as a person building, running, and leading a large organization. You don’t seem similar to other successful founders they have interacted with.
  2. Communication issue, they didn’t understand what you were saying.
  3. They don’t believe your numbers, especially if you gave them conflicting numbers.
  4. You don’t know the space, haven’t studied the market, or haven’t talked to the users and don’t have good real insights.

What the founders should do?

  1. Keep the list of investors who said no and who seemed reasonable about it.
  2. Keep sending them updates every month.

To conclude :

  1. Believe the no, don’t believe the Why
  2. As long as you are confident, there are always more investors out there.



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kishlay raj

kishlay raj

Quite curious and enthusiast about learning new things.