• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

BobbyVoicu.com

I'm curious about stuff

  • Home
  • Entrepreneurship Articles
  • Startup Videos
  • About Me
  • Blog / Archive
You are here: Home / Misc / The REAL Reasons Why VCs Won’t Invest in Your Startup

The REAL Reasons Why VCs Won’t Invest in Your Startup

June 22, 2020 By Bobby Voicu Leave a Comment

I’ve found yesterday a great Twitter feed on the reasons a VC might pass on investing in your company. I publish the entire thread below, but go to Twitter to see the comments, as well.

Why VC investors pass on startups: a thread.

Alternative title: don’t take it personally.

You’re solving a problem that doesn’t exist.

The problem exists, BUT not for the audience you’re targeting.

The problem exists, you’ve got the right audience, BUT it’s not as painful to them as you think it is.

The problem exists, you’ve got the right audience, they feel a lot of pain, BUT your solution doesn’t really fix that particular problem all that well.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, BUT it’s not a big enough market.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, it’s a huge market, BUT it’s super saturated.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, it’s a huge market, there’s room for new players, BUT your business model won’t scale.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, it’s a huge market, there’s room for new players, your business model scales, BUT you can’t defend against competitors.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, it’s a huge market, there’s room for new players, your business model scales, it’s totally defensible, BUT you’re not pitching it well.

The problem exists, you’ve got the right audience, they feel a lot of pain, your solution is the right one, it’s a huge market, there’s room for new players, your business model scales, it’s totally defensible, you’re acing the pitch, and they still said no. NOW WHAT?

Non-comprehensive list of reasons why VCs might STILL pass:
– Fund is out of cash
– They invested in a competitor
– They don’t invest in your space (and are beholden to their LPs to stick to their thesis)
– They don’t invest at your stage
– etc etc etc

Of course, at any point in this process, the reason they pass might be YOU. The founder & team. Investors may not believe you got it in you. They will rarely own up to this – it’s hard to tell someone you don’t believe in them.

It happens. It sucks. It hurts.

Fundraising is hard. For 1st timers, it’s harder. For outsiders, it’s worse.

Focus on what you can control, build relationships, look for the people who believe in you. You might fail. Most of us fail a LOT.

But if you really want it, don’t let a pass stop you…

Prove them wrong instead.

I’ve found this thread through Dragos Novac’s amazing Sunday CET newsletter (you should subscribe). I used ThreadReaderApp to easily publish this.

Image from Canva

Filed Under: Entrepreneurship, Misc

Bobby Voicu

Bobby Voicu writes here from time to time.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

About

I write about things that raise my curiosity. And I’m quite curious about all kinds of things.

For a full “About Me”, go here.

Read more posts

  • A Real Life Robot Cue Stick Playing Pool
  • I didn’t know one of the Adobe founders was kidnapped for ransom in 1992
  • How People Get Rich in 2021
  • What is the hardest things you ever worked at?
  • The first 18 months of a startup
  • Do pandemics ever completely end? Sometimes…
  • Why Writers Write (according to Joan Didion)
  • The power of fans: Taylor Swift’s negotiation tactics
  • About Music, Fame and Social Media
  • Creators and Freelancers are Taking Over the World

Friends

  • Andrei Rosca
  • Dr. Alexandra Mircea
  • Emi Gal
  • Miruna Sfia
  • Rød Mallo Leiva
  • Sami the Westie
  • Vlad Balan
  • Vladimir Oane

The CEO Library Collections

  • Best Leadership Books
  • Best Productivity Books
  • Women Entrepreneur Books

Copyright © 2021 · Privacy Policy · Disclaimer