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

3 points by kiyanforoughi 13y ago

abuehrle 13y ago
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.
trevelyan 13y ago
Do you feel resentment over his/her previous rejection?
- kiyanforoughi 13y ago
  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 13y ago
What do you need the money for?
- kiyanforoughi 13y ago
  See my response above. We don't actually need money at the moment. We just raised 2 months ago :-)
  - Yaa101 13y ago
    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.
fencepost 13y ago
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.
ig1 13y ago
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.
davidsmith8900 13y ago
- Before I do business with them again, I would want to know why they changed their mind in the first place.
gesman 13y ago
Don't get emotional or do ego-trips. Get into cold business transaction attitude. This will make it win-win for everyone.

3 points by kiyanforoughi 13y ago

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.

trevelyan 13y ago

Do you feel resentment over his/her previous rejection?

kiyanforoughi 13y ago
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 13y ago

What do you need the money for?

kiyanforoughi 13y ago
See my response above. We don't actually need money at the moment. We just raised 2 months ago :-)
- Yaa101 13y ago
  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.

fencepost 13y ago

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.

ig1 13y ago

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.

davidsmith8900 13y ago

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

gesman 13y ago

Don't get emotional or do ego-trips. Get into cold business transaction attitude. This will make it win-win for everyone.