Dear SaaStr: How Soon Do Startups Get Notified by VCs About Their Decision to Invest?
Pretty quickly. Once a VC really wants to invest … you’ll know. Often in just a few days.
I know it’s very frustrating as a founder to be ghosted by VCs, to not hear back, etc. It seems so strange, so unprofessional. And I know it seems so frustrating when VCs don’t follow up, or circle back. But here’s the thing …
- While VCs meet a ton of founders — they don’t do that many deals a year.
- When they finally have one they really want to do, you’ll know.
- They’ll want to close it that week, or at least, that month.
So if you’re not sure:
#1. Assume a VC doesn’t want to invest if you don’t hear back. Not always the case, but usually, it’s a clear sign.
#2. But — it’s 100% OK to check in once or twice. VCs get busy, go to Burning Man, get behind. Not 50 times, but a few times. Don’t stress about being ghosted, or not hearing back. That means you haven’t cleared the bar, at least not yet.
#3. Sometimes, they just want to see one or two more data points. It’s also OK to reach out in a month or two after you have a stellar month. This can work well.
So if you’re concerned, anxious … well, just don’t be passive. Just check-in. See if they need more info, or more time, or just where you stand.
If the interest is reasonably high, you’ll hear back fast. And if you don’t, you also know …