How Investors Secretly Tell Founders They're Not Interested!
11 Signs Investors Aren’t Interested
Hey there founders! 💼
Ever pitch to an investor and feel like they're just not that into you? It can be tough to decipher their signals.
After evaluating hundreds of thousands of applications and working closely with over 2,200 founders from all over the world at Xartup, we've gained unique insights into what investors want.
While helping our founders pitch to investors, we have been lucky to be able to witness the picture from both the sides.
Here are some things to watch out for that might mean an investor is politely passing on your startup:
1. Crickets in the room. You pitch, they listen...and then...nada. No questions, no pushback, no nothing. This silence can be deafening. Investors who are interested will challenge your ideas and ask tough questions to see if your startup can weather the storm.
2. Feedback is a no-show. If an investor is jazzed about your idea, they'll usually offer suggestions on how to improve your pitch, product, or something else. This is a good sign that they're invested in your company's success and want to see you win.
3. You're not getting introduced to their network. Investors who are keen on your startup will want to get more intel on you from their trusted network. This could mean connecting you with other investors or potential customers who fit your target market. They might even ask these people for their thoughts on your product!
4. They're not bragging about their firm. When VCs are really excited about a deal, they'll try to sell you on everything their firm can offer. They might talk about their impressive network, their superstar partners, or how they'll be by your side every step of the way. If they're mum about this stuff, it might be a sign they're not that interested.
5. No whispers about due diligence. Investors who are serious about investing will want to do their homework on you and your startup. This might involve talking to people who know you and your business. If you hear that an investor has been reaching out to your references, that's a good sign!
6. They're hung up on valuation. If an investor gets stuck on the nitty-gritty of the valuation, it might be a sign they're looking for an excuse to walk away. Investors who are truly excited about your startup will fight for you and try to convince their partners why this is a deal worth doing.
7. You can't get past the gatekeeper. Having trouble getting a meeting with a key decision-maker at the VC firm? This could mean a couple of things. Maybe the junior person you connected with didn't sell your startup well, or maybe they just aren't that interested themselves. In either case, try to educate them more about your opportunity.
8. The next steps are unclear. After a meeting with a VC firm, there should be a clear next step in the process. If you don't hear anything or get a vague answer when you ask, it probably means they're not moving forward with your deal.
9. Ghosting is a bad sign. Investors who are interested will be responsive and communicate clearly. If you keep sending emails that go unanswered, it's not a good sign.
10. They keep asking for more, more, more. If an investor keeps bombarding you with information requests but never mentions investing, they might be fishing for information for another startup they're more interested in. Be careful about what information you share in these situations.
11. They haven't read your deck. If you send an investor your pitch deck and they haven't reviewed it before your call, it shows a lack of interest. Investors who are excited will do their homework before a call to make the most of their time with you.
Remember, these are just general guidelines. There will always be exceptions. But by keeping these signs in mind, you can avoid wasting time on investors who aren't the right fit for your startup.
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