YC
Investors Said No, Now What?
@ Y Combinator
04/30/22
Takeaways
MS
Michael Seibel
04/30/22
@ Y Combinator
When an investor says no, founders should believe the no and not the reasons given, as this helps maintain their confidence and focus on their expertise.
MS
Michael Seibel
04/30/22
@ Y Combinator
Investors may have a superficial understanding of a startup's market, and their feedback should not be taken as definitive; founders are the true experts on their product and market.
BF
Brad Flora
04/30/22
@ Y Combinator
Founders often mistakenly believe that the reasons investors provide for rejection are the actual problems with their startup, rather than considering other potential issues.
BF
Brad Flora
04/30/22
@ Y Combinator
It's common for founders to hear the same reasons for rejection from multiple investors, which can indicate a broader issue that needs to be addressed rather than a specific flaw.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
When an investor says no, founders should take notes on the feedback but not internalize it as a reflection of their worth or the company's potential.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
It's crucial for founders to pitch to many investors to gather consistent feedback, as only then can they determine if the reasons for rejection are valid data points.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
Investors often reject pitches because they don't see the founder as capable of leading a large organization, which is a significant concern during the investment process.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
Many founders mistakenly believe that fundraising is about more than just raising money to build a successful company, which can lead to misalignment with investor expectations.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
Investors evaluate founders by comparing them to previous successful ones, and a rejection can occur if a founder doesn't match that pattern or ranks lower than others currently pitching.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
It's common for investors to change their minds about a founder after seeing significant progress, as initial rejections can be based on early impressions that may not reflect the founder's true potential.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
Founders should maintain a list of investors who said no and keep them updated on their progress, as this can lead to changed opinions and potential future investment.
YC
Y Combinator Cast
04/30/22
@ Y Combinator
The key takeaway for founders is to believe the no and not the why, maintaining confidence and understanding that there are always more investors to approach.