3 Questions to Ask when a VC says “No”
We pass on investments all the time, we like to say the second best answer we can give is a quick “no”. As much as possible we try to provide some feedback to founders on why we are passing, but unfortunately we don’t always.
When our existing portfolio companies meet with other investors we like to get as much information as possible about the meeting. If we have a relationship with that investor we will reach out to them to find out more. This isn’t about putting them on the spot or pressuring them, its about learning what we can do better.
Ask these three questions (and any others) when an investor passes:
- What concerns do you have about our business?
- What excites you about our business?
- If you were in my shoe’s what would you do?
Keep a list of all the answers, look for patterns and learn from it. If you are hearing the same thing over and over there is a good chance its something you may want to look into.
Investors has the luxury of seeing hundreds to thousands of pitches a year, leverage that and no pitch meeting will be a waste.