

Ask HN: How would you treat a VC who turned you down but now wants to invest? - kiyanforoughi


======
ig1
Many large startups who've gone on to raise multiple large rounds have taken
money from VCs who've rejected them previously, it's not uncommon as VCs
reject companies for a whole host of reasons many of which have nothing to do
with how much the VC likes you/your vision/etc.

In practice what really matters is your relationship with the VC and the the
partner who's leading the round.

If you feel resentment or that they don't understand your business then
politely decline and move on, it'll be in no-ones interest if you take their
money while feeling angry at them. If you're feeling ambivalent then consider
them like any other VC you're evaluating taking money from.

------
abuehrle
The same way you'd treat any other VC who wants to invest.

You may have an additional data point to consider if this VC behaved badly in
the past.

Don't consider punishing the VC for not believing in you or something
similarly silly. It's just business.

------
gesman
Don't get emotional or do ego-trips.

Get into cold business transaction attitude. This will make it win-win for
everyone.

------
fencepost
Treat them the same way you'd treat any other later-round VC investor. If
you're going to need to do substantial work with them but feel this will be
difficult you can certainly bypass them, but unless the initial rejection was
for something other than legitimate reasons then get over it.

------
trevelyan
Do you feel resentment over his/her previous rejection?

~~~
kiyanforoughi
No resentment. We're in the situation where several VCs rejected us because
they thought another player (who has raised way more than us) was the better
investment. Now, "the better investment" is crashing and burning, and all
these VCs are turning to us.

------
mnbvcxza
What do you need the money for?

~~~
kiyanforoughi
See my response above. We don't actually need money at the moment. We just
raised 2 months ago :-)

~~~
Yaa101
Knowing this, my advise is to kindly explain that they are too late this time
but that they are considered for next round or new plans.

------
davidsmith8900
\- Before I do business with them again, I would want to know why they changed
their mind in the first place.

