Thursday, September 6, 2012
Insights and Opinions: They Just Didn't Get It: VC Rejection
How do you handle it when a venture capitalist rejects your pitch? Steve Reich, a Southern California angel investor, tells the story of how one startup handle dit, and gives some advice.
A billion dollar established market. Incumbent companies so despised by consumers that they are routinely sued over the poor quality of their offerings. A dynamic founder who has proven he can run lean and get the job done. A young VC liked the idea and took it to his partner meeting. What could go wrong?
A turndown. "They just didn't get it."
Meet Erick Arndt and VacationJuice.com. A great entrepreneur and company who were just turned down at a notable LA VC firm.
When a pitch fails, it's tempting (and emotionally satisfying) to blame the audience. Erick took the harder road, and asked himself what he could learn from this rejection. His experience illustrates some great lessons for all of us who are selling an idea:
1) Don't settle for a phone meeting….go in person
2) Arm your advocates well
3) Well-meaning advisors can lead you astray (Continued...)
Read the rest of They Just Didn't Get It: VC Rejection.