Believe the 'no, not the why' when handling investor rejection.
Prioritize real progress in the business over addressing every critique from investors.
Deep dives
Founders' Confidence Shaken by Investor Rejections
Startups founders often have their confidence shaken by investor rejections, despite being experts in their field. Investors, who spend limited time with founders, may give feedback that founders take to heart. However, founders should not internalize every reason for rejection, as investors may not have a deep understanding of the startup's unique aspects.
Interpreting Investor Feedback
Founders tend to overly value feedback from investors, even when it may not be accurate. It's essential to understand that investors may offer feedback based on incomplete knowledge or personal biases. Founders should focus on making real progress in their business rather than trying to address every critique from investors.
Believe in Progress Over Investor Feedback
The key to success in fundraising is to prioritize real progress in the business over attempting to appease every investor's feedback. Investors are more likely to be swayed by tangible achievements and business growth than by superficial changes in pitch materials. By focusing on continual progress and maintaining confidence, founders increase their chances of attracting investor interest.
Step inside the Group Partner Lounge to hear Y Combinator Group Partners Harj Taggar, Michael Seibel and Brad Flora discuss how you should handle rejection from investors and why you should "believe the no, not the why."
Apply to Y Combinator: https://www.ycombinator.com/apply/
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