What to Do when the Investor Says No
Changing the product, the price or the promotion? Today, we\u2019ll talk about What to do when the investor says no. In raising funding you\u2019ll hear \u201cno\u201d quite often. There are many reasons why investors do not invest. Sometimes, they are busy with other deals. Other times, they are looking for a deal in another sector or stage. If they are saying no because they are interested in investing and want to invest in your sector and stage, but not your deal, then what should you do? There\u2019s an old saying in sales, \u201cNo good salesperson takes no for an answer.\u201d Naive salespeople take this the wrong way and basically put their foot in the door till the customer buys something. A better salesperson pursues the opportunity by changing the pitch, the product or the price. If investors are saying no and it\u2019s not for reasons of timing or a good fit, then you could change the price, which in this case is the terms of the deal. Offer a better valuation, additional warrants, or other incentives. You can also change the product by improving the business with increased sales, a higher-level team, or a better product. You could also change the promotion by repositioning the deal from one type of business to another. For example, you could reposition a deal from the EdTech sector to the impact sector. In summary, don\u2019t take no for an answer but don\u2019t just put your foot in the door and harangue the investor. Give them a better deal to invest in. Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!