The VC No And The Entrepreneur Yes

Bill Burnham has a great series (1, 2 & 3) on the Art of the VC No. Saying No is their business (from thousands of business plans to a handful of investments), and Bill explains how it’s hard to say No, common ways of doing it and his reasonable approach.

As an entrepreneur who has heard the word as much as anyone over the years, I thought I would chime in from the other side of the table.

When a VC doesn’t say No, they keep a free option to invest. Even better, they get to see your business as a moving picture instead of a snapshot presented at the first pitch. They have time and deal flow on their side.

Entrepreneurs are in the Yes business. The more you hear that word while cultivating relationships, the greater the valuation of your company. Same thing holds for hiring and selling your product. More critically, the enemy of the entrepreneur is time; and an increase in your Yes volume, provided you can make efficient decisions, the more time saved.

When you first start your business, all you hear is No. Accordingly you become conditioned to never accept it as an answer. As your business grows, Yes volume increases and eventually you start dealing with the sell-side in a delightful turn of the table.

For entrepreneurs, there are a couple of approaches to avoid hearing No, none of which I am particularly good at:

Ross Mayfield | Contributing Writer

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