The best response to a “pass note” (declining the investment) makes the investor feel like they missed out.
But – it’s not by selling the opportunity further.
So what does that look like?
“Thanks for the email this morning, understand your reasoning, and look forward to continuing the conversation at a later date.
I was just telling our board member, I love what you stand for and how you assist founders, you’re the kind of VC I want to 100X their money because I know it’s going to go back into successful companies that make the world a better place.”
An epic response to rejection. I keep this in a note on my phone. It is a powerful reminder for me to stay classy and positive as I was raising, and faced with hundreds of rejections.
On the contrary — petty, defensive, and dismissive responses to passes further reassure investors they have made the right judgment call on the leadership. I remember most (all?) of these poor responses because they stood out so clearly from the rest as bad form. The reactive response introduces a substantial mental hurdle for investors to ever reconsider the opportunity, or endorse it to their network.
The founder who sent the note above is an individual I’ve continued to support outside of my portfolio. In his early 20s, he has shown leadership capabilities beyond many. From the note above, I know he brings the right attitude to his team and work, even when things aren’t going as planned. This was truly the best response I’ve ever received, and it stood out for all the right reasons.
I have been waiting patiently for someone to out-class this note. 👀
How can you outshine the next time rejection happens?
