1/ I’m consistently amazed by PE/VC investors that don’t pass on deals in ways that is productive for them or the CEO they passed on.
2/ It is important for the investor because that CEO is connected. The CEO is going to talk to other people about you – and relay their experience. If you ghosted away, didn’t provide helpful feedback, weren’t direct, etc – that leaves a really bad taste in a CEOs mouth.
3/ @VCsurferDAD passed on us in our Series A (in ~15 minutes) and I have referred dozens of CEOs to him because he did it in a thoughtful, respectful way. I have referred more CEOs to him than to at least 1 of the investors that invested. Think about that. (And thank you Bryan)
4/ The CEO wants feedback. She is used to being told no- she can take it. She wants to not waste her time thinking about you and whether you need more information. Just step up and be an adult: pass in the right way.
5/ Here is how we try to do it @CircleUp’s equity fund (CircleUp Growth Partners):
6/ First – make a decision. And make it efficiently. Don’t drag it on. Don’t just ghost away. Make a damn decision. If you know there is a deal killer – category, team, KPIs, etc – you know your answer. Just make the decision.
7/ Next - pass within 24 hours of making your decision. Email or phone is fine- I don’t think CEOs care that much unless you’ve spent a ton of time with them (in which case it’s a phone call).
8/ When you pass, pass respectfully. I know it’s hard to deliver hard news- but that’s your job. Do it. *Do your job*. The CEO can take it-but deliver it in a respectful way. This is their baby – speak clearly, honestly and use language you would be proud to see in print later.
9/ If you can't deliver the tough news effectively I don't want you on my team anyway.
10/ Finally- pass thoughtfully. Provide actual feedback that has depth. Think the team is too light- say it. Just suck it up and say it. Have some strong negative views on the product? Say it with some detail. You don't owe them a debate- but you do owe the CEO feedback.
11/ The CEO has heard a lot of negative feedback -trust me. But if you give clear, direct and honest feedback, the CEO can learn from it and grow. That’s what she wants- sometimes even more than your money.
and of course I misspelled his name :) Sorry Brian @VCsurferDAD
