Discover how founders deal with VCs who ghost them during the fundraising process and learn valuable tips on addressing this issue and showcasing business momentum.
Some investors delay or ghost founders in order to hang around the opportunity, hoping it becomes more compelling later on.
Getting early commitments from angels and announcing them in investor update emails can showcase involvement from experienced individuals.
Deep dives
Investors with slow decision-making process
Some investors have a slow decision-making process and may never explicitly say no. It can be frustrating, but it's important to align your expectations with the reality that not every investor acts with conviction. Some investors delay or ghost founders in order to hang around the opportunity, hoping it becomes more compelling later on. Others struggle with closing the loop or have internal processes that cause decisions to get stuck.
Dealing with investors who ghost or drag out the process
Pushing too hard for a decision may result in an investor passing on your startup. It's crucial to have at least one term sheet in hand before appearing desperate. In your first meeting, ask about the investor's decision-making process to get an idea of their progression. Show business momentum during the fundraising process, such as growing core customer metrics, to build conviction. Getting early commitments from angels and announcing them in investor update emails can also showcase involvement from experienced individuals. Ultimately, don't dwell on investors who pass; most will not understand your vision as well as your customers do.
1.
VCs that Ghost: Dealing with Investors Dragging Out the Process
Welcome to the second week the brand new Texts with Founders Podcast.
The goal of this podcast is simple: make the knowledge being shared on Texts With Founders even more accessible to a wider audience of founders by creating high quality audiobook-like editions of popular posts.
Full Written Post: https://textswithfounders.substack.com/p/vcs-that-ghost-twf-meetup-in-sf
Find me at weisser.io and on X at https://x.com/julianweisser
Are you exploring starting a company? Apply for ODF. The program has helped over 1,000 companies such as Traba, Levels, and Finch find their co-founders and get started. Learn more at beondeck.com.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit textswithfounders.substack.com
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