So You’ve Been Turned Down By a VC: Now What?
It happens to just about everyone — if you’re courting investors at some point you’re going to get turned down. What’s the secret to getting over — and getting the most out of — VC rejection?
First and foremost, OpenView Associate Ricky Pelletier explains, don’t take it personally. The truth is you’re likely going to be turned down a lot, and the key isn’t learning how to change investors’ minds and force a deal, but rather how to get the right feedback and incorporate it successfully.
Don’t try to reposition the company or get the investor to look at it in a different way, he advises, because chances are they’ve already made up their minds. A better use of time is to ask for feedback. Why are they saying no? What concerns do they have with your business model, the market opportunity, or your team?
The next step, of course, is to act on feedback. Attack different segment of the market, tweak your product, add to your team. Once you make improvements and address any concerns on your end, you’ll then be able to shift your focus to finding the right investment fit.
What is CAC Payback? How do you measure it? We break down the basics of this metric and why it’s important in your SaaS business in this article.