Navigating Investors Rejections

The Takeaways

  1. Don't take things personally.
  2. 99% of the investors will say no. It's a numbers game.
  3. Your job is to find the 1% who are interested.
  4. Getting to a yes is a matter of belief and persistence.

Getting a "NO" from an investor stings.

Rejection is always hard.

But here's the kicker: it's not always about you. As a VC team, we've had to pass on countless promising founders, not because they lacked potential, but because certain factors didn't align with the team investment strategy. It's a tough call, but it's rarely personal.

1️⃣ Don't take it personally.
Let me break it down for you. Even I, as an investor, have to make difficult decisions daily. Passing on a potentially great founder is one of the hardest parts of the job. It's not a reflection of your abilities or the quality of your idea. Sometimes, it just doesn't fit into the puzzle I'm trying to solve with my investments. Remember, rejection is often a mismatch of needs and circumstances, not a judgment of your worth as an entrepreneur. It's not about you, it's about them.

2️⃣ The VC model and the odds game.
Here's a little secret about the venture capital world: it's a numbers game. For every investment made, there are countless others left on the table. It's not a reflection of the founder's capabilities or the brilliance of their idea. It's simply the nature of the beast. Venture capitalists operate within a framework where they can only invest in a fraction of the companies they encounter. The odds are inherently stacked against the founder, but it doesn't diminish their potential or the value of their venture.

3️⃣ Understand that it's a binary universe of investors.
In the vast sea of investors, there are essentially two camps: those who aren't interested and those who are. Your goal is to navigate through the noise and find that small group who resonates with your vision. Remember, a "yes" or "no" from an investor doesn't define your worth as an entrepreneur. You're simply the messenger, presenting an opportunity that may or may not align with their interests and objectives.

4️⃣ Getting to a yes is a numbers game.
Persistence is key. Believe that the right investor is out there, waiting to champion your cause. Your job is to cast your net wide and connect with as many potential investors as possible. It's like searching for a needle in a haystack, but all it takes is one "yes" to change the trajectory of your venture. Keep pushing forward, and don't let rejection deter you from pursuing your dreams.

To summarize, rejection is an inevitable part of the entrepreneurial journey. It's not a reflection of your worth or the potential of your venture. Keep your chin up, stay resilient, and remember that every "no" brings you one step closer to that elusive "yes." Keep hustling, keep believing, and never underestimate the power of perseverance. The right investor is out there, and when you find them, the rest will fall into place.

Whenever you're ready, Leap can help in 3 ways:

  1. First check: infusing startups with up to $300K to boost initial market traction.  
  2. GTM: accelerating GTM from 0 to $100K ARR to position for fundraising.
  3. Fundraising: orchestrating a VC Pre-Seed / Seed round.

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