{"id":994,"date":"2022-12-07T16:24:41","date_gmt":"2022-12-07T16:24:41","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/startups\/blog\/?p=994"},"modified":"2024-11-04T14:09:56","modified_gmt":"2024-11-04T22:09:56","slug":"when-vcs-say-no","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/startups\/blog\/when-vcs-say-no\/","title":{"rendered":"Three best responses when VCs say “No” – #InsideVC"},"content":{"rendered":"\n
This is the last of four posts offering practical advice to early-stage startup founders from an entrepreneur turned venture capitalist. Jonathan Shriftman<\/a> is a partner at Expanding Capital<\/a>, a growth stage VC fund that invested in companies like Coinbase, Cameo, Classpass, Postscript and Astra Rockets. Previously Jonathan founded Humin, an AI-powered address book that was acquired by Tinder, and Sol\u00e9 Bicycles<\/a>, the first direct-to-consumer online bicycle retailer.<\/em><\/p>\n\n\n\n You can read the earlier parts of this series here:<\/em><\/p>\n\n\n\n Raising capital can be brutal. We asked Jonathan for his best advice on dealing with rejection.<\/em><\/p>\n\n\n\n When you\u2019re fundraising it can be really difficult when VCs say, \u201cNo.\u201d Here is a practical list of things to do when you receive a rejection from a VC.<\/p>\n\n\n\n Don\u2019t let the bridges you cross become bridges that you burn.<\/p>\n\n\n\n They may have very specific concerns about whether you have the right growth, the right numbers, or the right team. Or perhaps they believe you\u2019re solving the wrong problem. You might disagree with the feedback, but if there are parts that you agree with, you can try to address those issues ahead of your next fundraising approach.<\/p>\n\n\n\n In my experience as a founder, I took that feedback seriously from a VC who had rejected the company. Later I went back to them to show how I had implemented their suggested changes and they became investors.<\/p>\n\n\n\n Even if a VC rejects you at first, the door might not be closed forever.<\/p>\n\n\n\n Even if a VC has told you, \u201cNo,\u201d ask them if they\u2019d be willing to make introductions to other funds that they think might be a more strategic fit.<\/p>\n\n\n\n You might have spoken to a VC that has deep domain expertise in fintech or healthcare and you can ask them if they know other funds that are more aligned to your business. Oftentimes a VC will be willing to make some helpful intros to other funds who would move forwards and make an investment in your company.<\/p>\n\n\n\n\n
Thank them for their time<\/h2>\n\n\n\n
Ask the VC for feedback<\/h2>\n\n\n\n
Ask for introductions<\/h2>\n\n\n\n