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Tuesday, January 6th, 2009
articles.php?which=KeepingHearingNoReadThis
Keeping Hearing "No?" Read This.

If you're an entrepreneur seeking funding for a start-up, you're going to hear a lot of "Nos," as we noted in our last post. But what happens when all you hear is no from every investor, banker, friend, family member, or person you pitch—right off the bat? A member at TheFunded.com—a website where entrepreneurs complain about VCs, rate them, and everything in between—posted some useful advice today about what to do when you get an immediate shutdown from an investor. It's a good follow-up to our previous post:

"If you [are] 10 minutes into your presentation and an investor says 'no,' then there is a bigger problem. The problem is probably with your pitch itself, as any investor would not even book a meeting unless there was some basic interest in the idea. In the case of a "no" that comes too quickly, it is really important to try and learn what you did wrong by asking a lot of questions."

Solid advice. If you feel like the hammer was dropped prematurely, he suggests that you do a few things:

-ask for advice from the VC on how to improve your presentation. If that wasn't the issue, ask what aspects of your business model were problematic.

-ask for advice on other investors to speak with.

-schedule a time to get back in touch and report your progress.

Remember, there's no harm in trying any of these tips. The worse that will happen is that you'll get another, er, no. At best, you'll score another meeting where you'll be able to demo an improved model or presentation. Of course, sometime it's the entrepreneur that gets it wrong, sometimes it's the investor. It may just be that you've pitched a VC or angel with whom you're not a good fit or who doesn't get your idea. Regardless, whatever you do, don't try to argue with them once they turn you down. That'll just end up posted as a strike against you and make you look combattive. No one wants to work with a egotistical jerk. But at the same time, don't be afraid to persist. A few tweaks to your model and your presentation, and you could be back on track.

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