The famous scientist Louis Pasteur popularized the Latin phrase “Fortuna favet menti paratae”, or “fortune favors the prepared.” Nowhere is this more important than when entrepreneurs seek to raise venture capital (VC) funding.
VC funding provides entrepreneurs with critical resources to enable significant success. However, securing VC funding can be difficult, especially for unproven founders. The reasons why one company secures funding and another does not, can be difficult to discern, especially to the entrepreneurs who believe it’s “obvious” why they should be funded.
Many good articles have been written to help entrepreneurs improve their fundraising pitch from a structure, delivery, and messaging perspective. This article strives to add to the conversation by sharing a journeyman VC’s view on the reasons why VCs pass. The hope is that a deeper understanding of why VCs say “no” will help more entrepreneurs get to a “yes” and achieve their company building objectives.