If there is one thing that most startups misunderstand entirely, that’s probably fundraising. Thus, they create their own mental image of what needs to be done to raise money successfully. After interacting with more than 1,000 startups, I can confidently say that it’s almost always wrong.
Who to blame?
VCs that stay opaque on why they say yes or no? Maybe! Most VCs never want to close doors, so they often remain open and vague on why they pass. They often say, “We like what you do, but it’s not completely aligned with what we are looking for; that does not mean what you are doing is not interesting; we are sure you will prove us wrong.” That does not help much. Sometimes you get something more specific, like “your go-to-market strategy does not convince us.” A bit better, but not quite.