Fred Wilson: Saying No

[charzom]

http://avc.blogs.com/a_vc/2007/10/saying-no.html

[Jaggu]

Totally agree. It is always good to tell the truth so that person on another side stops guessing the reason.

We got rejected by YC and I am just guessing the reasons. Thinking that all founder aren't ready to move to SV for three months and also few are not ready to leave their full time job...etc... but still it is just guessing game... hey could you tell PG to tell everyone about reason for rejection ;)

Few people might not able to digest the reason..but all are not same...many can take that as a advise and that could help in future..

[jkush → Jaggu]

YC can't and shouldn't provide reasons why. They've already said as much. In their case, it's different from Fred Wilson. YC has to say no just twice a year. For Fred Wilson and any other VC, it's an ongoing thing. There's a difference.

[dpapathanasiou → jkush]

The YC approach to "no" is easier when your only point of contact is a web form anyone can fill out and submit.

Most VCs (and I've never met Wilson, but I'm guessing this applies to him) meet people in person, because they've gotten introduced or referred by someone in their network.

So in that context, it's tougher to reject people without providing more details.

[pg → dpapathanasiou]

it's tougher to reject people without providing more details

As I've explained over and over, the reason we don't provide more details is that there often are no details to provide. Often the sum total of our reaction to an application is "we don't understand this."

The main difference between us and Fred Wilson in this respect is that he might evaluate 1 or 2 carefully screened deals a day, while we evaluate several hundred.

[jsjenkins168 → pg]

While it might be difficult to give reasons based simply on an application, I'm sure there are valid reasons for an interview rejection. That would be very useful information to know.

Although I understand many of the reasons are probably due to simply not being compelled by the founders, which is much more difficult to tell someone than simply that "there are too many competitors".

The truth can hurt, but sometimes that is what someone really needs to hear.

[bootload → pg]

"... we don't understand this ..."

Is it the lack of communication skills conveying the idea? Or is it something more fundamental along the lines of, "we don't understand this 'foo'"?,

Where "foo" is 'idea is too derivative', 'you have no users in mind'... etc?

[bootload → bootload]

for a better understanding of the mindset read Matt Maroons, *"Advice for Y Combinator Interviewees" ~ http://mattmaroon.com/?p=283

[dpapathanasiou → pg]

We are saying the same thing.

[edw519 → Jaggu]

What does it cost you to ask? Building a business upon guesses is like building a house upon sand. Find out and turn those guesses into data.

[gscott → edw519]

That is why you build a prototype, put it out there and get people to tell you what they think.

[alaskamiller → Jaggu]

Sometimes even with the cards right and the stars aligned, people just don't plain like you.

[jkush]

He's right. If you are in a position that requires you to say no a lot, you should learn to do it quickly and honestly. It probably helps him keep his sanity, and shoot-the-messenger type entrepreneurs aside, probably makes his relationships less messy.

[gscott]

I went ahead and sent them an email, this vc firm gives you a reason when they say no. Fred Wilson seems to be a polite and down to earth guy just to take a random email from someone he doesn't know and give it some thrift.

[Tichy]

So how do you get VCs to seek you out, instead of the other way round?