5 Reasons Why VCs Say No To Startup Founders

The startup world is tough. So, it’s not surprising that many founders are turned down by VC’s. It’s a harsh reality, but it’s one you have to learn to deal with if you want to get funded. Here are the top five reasons VC’s say no to founders.


A lot of VC's like to take the ‘long view’ and make sure that the problem you solve is big enough to make your business and their investment grow. If not, it may just not be worth their time and investment.

You’re not solving a big enough problem


There are times when your business numbers don't give good backing to your expectations.VC's don't like that. Either give them proof that your business works or lower your expectations.

You have unrealistic expectations


VCs usually come into play during the growth stage of a startup. If you don't even have a problem-solution fit or a product-market fit, you are not ready for VC funding too.

You’re not ready for VC funding


Some VC's just aren't comfortable with the idea of investing in a company operating in an industry they are not familiar with or if they feel they're not adding any value to it.

They don't see themselves adding value to your venture


VCs look for "the X factor" in a startup team and they like to make sure that your team is full of required skills to fulfil the promise you're making in your pitch deck.

Your team lacks the promise