Ask HN:Need help dealing with a VC
Was in discussion with a venture firm from last one month . They liked our product and were heavily interested in investing(seed money of $200k). We had 4 meetings till now and we were very optimistic. Now in the very last moment the investor firm raises concern over Market size( we have a new consumer based product and its tough to calculate the market size). It looks like everything is falling apart. Any possible theories as to how to deal with it ? Final decision is not made yet
(
5 comments
| 5 points
| on HN
)
"No" => "No"
"Maybe" => "No"
"Yes" => "No"
Term sheet => "Maybe"
This is the worst part about engaging VC. They are disciplined about not giving "No" as an answer. Some of it is cultural, and some of it preserves their optionality. They will keep you on the hook forever if you let them.
http://blogs.hbr.org/2010/04/how-to-get-to-no/
Time is better spent looking for a slam dunk than trying to convince the unconvinced.
I would advise to move forward, quit wasting time thinking and presenting ways to prove to the investors that market size is good enough - probably not even the most truthful reason they decided to go with the no. Just the excuse they chose to say to you.
Reject any more meetings, reject any ask for new documents. Go back to work on your product.
Eliminate the need for their money. They are expecting you to come after them, pull away. People want what they can't have, you are the prize. Good read on managing the Pitch process by Oren Klaff> http://pitchanything.com/book/