Dear SaaStr: What is it like to be pitched by startups as an investor?
There are really three modes from a VC perspective during a fundraising pitch:
- You Almost immediately want to do the investment. You go into the pitch already very interested, and within 15–20 minutes, you want to do it. This is 80%+ of the investments I’ve done. These are also a great use of your time. Almost all my investments at SaaStr Fund, I’ve told the founders before the meetings end that I’m in if everything they’ve said checks out. Not all the deals, but probably 80% of them.
- The “Almosts”. These are brutal as an investor and confusing for founders. There’s good stuff there, so it’s close. The numbers are strong, but the CTO isn’t good enough. Or you love the team but the market is just too small, or growth is good but not great. You hope learning more will get it from Almost to Yes. But it almost never does. These end up burning a lot of cycles and often confusing founders, who see it’s an Almost and burn cycles trying to get it to Yes as well. I now try to immediately tell the Almosts it’s unlikely to be a Yes to save everyone time.
- The Likely “No’s.” A lot folks will take meetings to learn. I won’t. They waste a ton of time. There is no point IMHO in meeting any startup you don’t think you would potentially invest in. Some will take these meetings JIC. I find them torture. It’s why I no longer do “favor” meetings or even take most warm intros. They frustrate everyone and waste precious time.
