How to follow up with investors who have rejected you

I realize this isn’t easy, to embrace the rejection and get comfortable with talking about it.

If you've been rejected by an investor, it's not the end of the world. Rejection is a common occurrence in the startup world, and it's something that you should expect.

Here are some tips on how to follow up with an investor who has rejected you:

1. Do your research: Figure out why the investor rejected you. Was it your pitch? Your business idea? Or was it something else entirely? You need to understand why you got rejected in order to better prepare yourself for next time.

2. Make a strong case: Don't take the rejection personally. You have a great business; you just need to know how to sell it! Maybe you didn't get through because the investor saw holes in your business plan or didn't understand how you make money. In this case, you need to go back and refine your pitch in order to show the investor what you're talking about. You also need to make a compelling case for your business idea.

3. Be persistent: If you've done your research and made a strong case, don't give up! You can ask an investor to revisit your proposal to see if you changed their mind about investing. To increase your chances of getting that second meeting, it's important to avoid being pushy or arrogant.

4. Keep your spirits high: When you're rejected, it can be hard to keep your head up. But you have to keep pressing forward! If you have an idea you think would be perfect for a startup, you just have to keep pursuing it. You might just find the right investor for your company one day.

What to do when an investor rejects you

There are many investors who will give no response, go missing in action, or are non-committal.?So what do you do with all of these investors??Here are a few tips to follow up with these potential funding opportunities.

1. Follow up: Send the investors an update email with minutes of the meeting, and information which you may want to add and thank them for the time and feedback received. Use the same thread to keep updating on the startup progress and let them track your progress.

2. Be persistent, and provide additional updates: Find ways to constantly send updates to the investors so they stay engaged with you and the startup and don't fall off the map on their radar completely.

3. Be personal: One of the best ways to connect with investors is by being human and addressing their concerns. Ask questions, address concerns and get to know them on a more personal level. You want to establish trust and prove that you are dedicated to executing on your business plan and staying accountable and responsible for your actions as a business owner.

4. Know your worth: When you're rejected, remember that not everyone is going to be interested in your startup. Don't take it personally and don't overreact. Accept that not everyone is going to be a good fit for your startup and move on. Don't let rejection discourage you from continuing to pursue your idea or business.

There are many ways to approach potential investors, and the most important thing is to keep trying. Reach out to as many investors as you can, and your chances of finding someone interested in your business will increase significantly.

Objections

In pitch meetings with VCs, if you see no objections from them on your assumptions, questions on your projected numbers or inputs on your business model then you are not getting their money. They are not interested.

It takes a minimum of 3-7 meetings with a VC to close an investment deal. Check the list of VCs pitched, no of meetings done if it crosses 7 meetings then mark them as a good qualified VC lead, till then it’s only prospecting or discovery mode.

• Questions around market size, VCs do not believe your idea can scale.?
• Talks on the business model, VCs do not believe in your unit economics, pricing ability to make money.?
• Objections on the go-to-market strategy or customer acquisition, VCs do not believe in your execution plan.?
• Queries around competition, VCs are worried about the founder's ability to raise the next round as there is no moat or unfair advantage.?
• Discussion on founders and team then interpret that VCs are finding the team incomplete or incapable to build a unicorn.?
• Lastly, more information is requested on products, VCs do not see your product market fit readiness.

After every pitch, analyse the meeting and recalibrate the pitch for success. A term sheet is a logical outcome of pitching to a VC when the founder is able to get the VC to stop doubting & start trusting??

Finding a lead investor

One of the hardest parts of raising a seed round is finding the lead investor.

VCs love a company that doesn’t need money and are less interested in those who are desperate.

When you're trying to find a lead investor for your startup, it's important to understand what qualities they look for in a company. Some investors are more interested in your team while others are more focused on your business plan. Remember that investors fund business, not products.

Investors want to see that you have something valuable and that people will be willing to pay for it. That's why it's important to find a lead investor who is aligned with your vision and can help you grow the startup. Once you get the social proof with the lead investor commitment it's easy to stitch the rest of the round balance capital.

Entrepreneurs who start successful businesses tend to share one major trait: They follow up. They say “yes” more often than they say “no.” They don’t give up at the first sign of rejection. They see every setback as an opportunity to learn and grow. You can sell hard, pitch, and hustle. That’s great. But the best bet is to draw them in. Be the entrepreneur and startup the investors would want to fund, and are even inspired to pursue to fund. Stand out as the one they believe is going to make it, can deliver and they want to be aligned with. Don’t be too shy to ask for help or funding if you really have value to offer. Effective fundraising typically works best with an attractive marketing strategy.

If this sounds like you, then you're more likely to succeed as an entrepreneur than those who give up easily.

About 100X.VC

100X is a first cheque SEBI registered fund which invests in early-stage Indian startups.

Investment Process

https://www.100x.vc/class08 - Apply here for Class 08

Fill up the application form here. Applications are accepted on a rolling basis. If there is an interest to evaluate further, founders will hear from 100X on the next steps of information collection in 7–10 working days. Once complete information is available to the investment committee, the selected startups will be invited for an interview. On success in the interview, the investment committee will email a term sheet offer for 1.25 Cr for 15% of future equity ownership using iSAFE notes. On completion of legal compliance and due diligence and signing of iSAFE notes, money will be immediately wired into the startup bank account. The estimated time from Term sheet to Deal Closure is 2 weeks once the due diligence documents are submitted and the Indian entity is incorporated.

What Happens in Class 08?

The 100X team starts working closely with the founding team on various aspects of the business, from product improvement to business model to pricing to financial modelling and even hiring key team and addressing various gaps in mutual consultation with the founders.

100X Works with Founders in 3 broad manners:

Mentoring Unlimited?- The founders get enrolled in exclusive masterclasses with the 100X Team and 50+ mentors. The Mentors are Founders, Operators, and Investors who have been there, and done that.

Network Access?- Founders are given open access to 100X’s Business Network of Advisors, Mentors, Corporates, CXOs, 100X Alumni Founders, and more. Each connection compounds the value of the startup.

VC Pitch Day?- It is an invite-only showcase of the Class 08 startups to a curated set of investors. The founders can build their next round of funding here. The event is attended by all the top Angels, Family Offices, Micro VCs, Corporate Funds and VC funds of India.

https://www.100x.vc/class08 - Apply here for Class 08