Today's thread is on how to go back to an investor after being turned down.
Is it worth it? And if so, what should your approach be?
Read on >>
Is it worth it? And if so, what should your approach be?
Read on >>
1) Let's say you have a great experience (and to be clear, if you have a bad exp, then you may not want to go back!) with an investor but are turned down.
Should you go back?
I think this is a q so many ppl wrestle with but is not talked about much.
Should you go back?
I think this is a q so many ppl wrestle with but is not talked about much.
2) It is totally fair game to go back and try to re-pitch.
BUT to give this your best shot, you'll need to take in the feedback you received from said investor and address it.
BUT to give this your best shot, you'll need to take in the feedback you received from said investor and address it.
3) As with any other "sales pitch" it is much more impt to listen and address the concerns than it is to keep talking / pitching.
4) This will also set you apart from probably 90% of the ppl who try to re-pitch investors.
I can't tell you how many times ppl think they have hustle by just following up with the same pitch.
You have to adjust based on the feedback. Otherwise, you'll get the same response.
I can't tell you how many times ppl think they have hustle by just following up with the same pitch.
You have to adjust based on the feedback. Otherwise, you'll get the same response.
5) E.g. If an investor says "I think..."
-the valuation is too high, you can't go back w the same valuation
-the market is too competitive, you have to address how it's not or not what they think it is
-your traction is too early, you have to go back w/ more traction
-the valuation is too high, you can't go back w the same valuation
-the market is too competitive, you have to address how it's not or not what they think it is
-your traction is too early, you have to go back w/ more traction
6) Now, you may disagree and move on / decide it's not worthwhile to continue pitching that investor.
But if you want to go back to that same investor, you have to address the concerns.
But if you want to go back to that same investor, you have to address the concerns.
7) Moreover, if you don't address the concerns, it reflects poorly on you -- that you don't listen / hear others, which is incredibly impt as the #1 salesperson of your company.
8) About 3-5% of portfolio companies @HustleFundVC are companies we turned down initially but then later invested.
Here are some reasons why:
-changed ideas altogether
-changed biz model
-changed valuation
Here are some reasons why:
-changed ideas altogether
-changed biz model
-changed valuation
9) We always feel lucky to be able to get a 2nd shot on goal in these cases.
But I think more importantly, often it's these founders who are above-and-beyond impressive in their ability to read signals and react / respond / change.
This demonstrates thoughtfulness.
But I think more importantly, often it's these founders who are above-and-beyond impressive in their ability to read signals and react / respond / change.
This demonstrates thoughtfulness.
10) tl;dr
Persistence isn't just about sending off the same pitch over and over to an investor.
It's about taking in feedback / signals, thinking about them, and addressing them.
And if you can do that, in many cases, it may make sense to re-approach an investor.
Persistence isn't just about sending off the same pitch over and over to an investor.
It's about taking in feedback / signals, thinking about them, and addressing them.
And if you can do that, in many cases, it may make sense to re-approach an investor.
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