♞ Benefit from VC Rejections

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Benefit from VC Rejections

A common question I get asked is how to respond to a rejection by a VC/Angel/Investor. The truth is that getting rejected sucks, and despite that, 99% of founders face dozens of rejections before they raise. Very few raise after just a couple of meetings.

The problem I have with the question of how to respond is that it implies that you need to deal with a bad situation. In my opinion, rejections are always a good thing. Dating is a great comparison; while it might feel shitty to get rejected, every rejection brings you one step closer to finding someone who will say yes. If you don’t take the risk of rejection then you also don’t have the potential to be accepted. Once you get into the game of volume, then no outcome is a bad outcome.

Once you adopt this mindset, the real question is, how can you benefit (practically) from VC rejections?

1. Ask for feedback - VC feedback generally sucks, but it’s still worth asking. Analyze it critically and decide whether to listen or not. 99% of the time, it's trash, but that 1% can significantly help you.

2. Ask for introductions - You might not be a fit for this VC, but they will know others, and some of them could be the ones you are looking for. Always ask for introductions.

3. Add them to your investor update list—Use the rejection as motivation. Add this investor to your monthly investor update list and show them what they missed out on every month. Not only will the motivation push you, but the updates could lead them to reconsider.

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Onwards and Upwards,

Liam Gill