Rejection Is Relative

We are fortunate at Real Ventures to meet a lot of entrepreneurs and regularly lament in our partners' meetings that we wish we could do more deals. The truth is, we won't do the majority of deals that we see. This is true of all venture investors.

I was going through the pipeline last week and over the weekend and contacting folks that we won't be moving forward with. In all cases, they are working on things that make sense. There is nothing "wrong" per se with the teams or the opportunities.

Any time you approach a VC you are competing for their attention first of all with existing portfolio companies that may be going through their own fundings or other matters that need attention and secondly with every other potential deal that an investor is looking at.

The thing to remember is that if an investor does pass is that this is not an indictment of your business. It does not (usually) mean your business does not make sense. It does not mean you should not be running this business. It just means it's not right for a particular investor at a particular point in time.

Rejection is relative and passing on an opportunity is a function of everything else that is happening at the time.

I am fond of pointing out Skype's path to getting funded. They were turned down by forty VC funds before going on to sell for over $2B!

So, while rejection does suck, don't assume it means your business sucks too. It is not a comment on your business. I can't speak for other funds, but at Real, if we do have concerns about an opportunity we try and clearly communicate that when we pass. But even that is just a piece of unsolicited advice.  Follow it if it makes sense. Reject it if it does not.

And when you do get rejected (which you will) just keep going. Just like relationships, there is someone out there for everyone. The best investor for you is one that loves and gets your team and your opportunity. Just keep looking for them.

Thanks to StartUpCFO / Mark MacLeod is a Partner at Real Ventures, Canada's largest seed investor.