17 Things Investors Say When Really What They Mean Is, “No”

17 Things Investors Say When Really What They Mean Is, “No”

One lesson I learned the hard way as a founder is that investors never like to say “no.” They especially don’t like to say “yes,” but “no” is almost as difficult to get out of them.

Why? Well, because they never want to completely close the door on what could eventually be a massive missed opportunity. Or, if all of a sudden you get Andreessen Horowitz to pony up, they want to be able to change their mind and jump back in.

It’s a pretty sheepish move in my opinion, but it’s not my money so who am I to judge.

As a founder, you hear all kinds of answers that appear on the surface to be semi-positive, but deep down are just “no’s” in disguise.

As a service to all of you founders who are out their raising money for the first time, here are some phrases to be aware of:

1. “I’d love to meet, but I’m swamped for the next two months. Send me your deck, and please coordinate a time in late September with <insert assistant name>.”

2. If at the end of your pitch they ask, “have you considered joining an accelerator?”, close the laptop and walk away.

3. “I’m going to watch from the sidelines for now.”

4. “Who else is in your round?”

5. “I love what you’re doing, but I’m not sure it fits our current thesis.”

6. “Let me talk with the MP’s at our next partner meeting and get back to you.”

7. “We’re at the tail end of our current fund, which we’re using for follow-on investments, but we’ll be looking at new investments with our next fund.”

8. “Keep me posted on your progress.”

9. “I’m a fan of what you’re doing, I just don’t know anything about the space, so I couldn’t bring any value to you.”

10. When you’re pre-traction: “We’d likely invest when you have a bit more traction.”

11. When you have traction: “We’d likely invest when you have a bit more revenue.”

12. When you have revenue: “We’d likely invest when you hit a $1M run-rate.”

13. We really don’t like to invest in competing companies. Let me talk to <portfolio company> and see if they view you as a competitor.”

14. “We’re going to have our ‘analyst’ run the numbers and take a deeper look.”

15. “I don’t like to invest in convertible rounds. Let me know if you change to a priced round.”

16. “We might sit out this round and take another look at your series A.”

And, my personal favorite…

17. “We like to follow a lead. Let me know when you’re about to close your round.”

Investors, feel free to chime in. What classic lines did I miss?

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

17 Things Investors Say When Really What They Mean Is, “No”-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

17 Things Investors Say When Really What They Mean Is, “No”-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

17 Things Investors Say When Really What They Mean Is, “No”-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

17 Things Investors Say When Really What They Mean Is, “No”-Inc42 Media
17 Things Investors Say When Really What They Mean Is, “No”-Inc42 Media
You’re in Good company