- Persuade & Raise
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- Decoding investor signals
Don’t let investors set your path
Read time 2.0 minutes.
Earlier this week, I spoke with a founder who had just met a well-known growth fund. The partner told them: “If you can triple revenue over the next 12 months and expand into two new markets, we’d love to lead your Series A with a big check.”
The founder walked away excited. It felt concrete: real numbers, real milestones, and the allure of a prestigious investor waiting on the other side. But here’s the reality—this is just another way of saying: “If you keep growing, we might take a look later.”
Why? Because that’s the default stance of later-stage investors.
They’re in the business of optionality. Meeting seed founders early lets them track progress without committing. By offering conditional enthusiasm, they avoid closing the door while keeping all the leverage.
The Trap for Founders
It’s tempting to anchor your plans around this kind of feedback. But the risk is you end up chasing a phantom—building your roadmap around a hypothetical offer instead of focusing on what actually drives your business forward.
How to Reframe These Conversations
See it as validation, not a promise. It’s good to know they’re watching, but it’s not a term sheet.
Understand the incentive. Funds benefit from keeping every door open—they rarely have a reason to say no outright.
Stick to your own strategy. Your milestones should come from customer needs and business logic, not an investor’s throwaway conditions.
Conditional promises from future-stage investors are applause, not commitment. Smile, take the compliment, and get back to building on your own terms.
Have you changed plans based on VC feedback? |
Onwards and Upwards,
