Why Don’t Venture Capitalists Tell You Why They Won’t Invest?

Today, we were asked the following question:

‘”Why don’t VCs tell you the reason why they don’t invest? Any feedback would be useful. It’s just plain rude.”

I (Jason) figured that this is really a personal question, so I thought that I’d post on my personal blog, as I certainly can’t speak (or even guess) the response for the entire VC industry.

You can see Jason’s thoughts here

  • Usually because after doing Due diligence they find your idea unprofitable. Remember VCs especially in this economy expect start-ups to grow by at least 50% during the first few years. They also get hundreds of offers.

    Most start-ups fail. I would say about 5% really make it out there.