TLDR:
– Investors may not be responding to startup pitches due to reasons such as non-matching investment thesis, lack of accessibility to contact information, lack of anonymity, lack of liquid capital, and unfundable companies.
– Startups should ask investors about their investment thesis, verify contact information before sending pitches, avoid repeatedly asking for updates, consider if investors are currently deploying capital, and seek unbiased opinions on fundability.
Article Summary:
In the first quarter of 2024, many investors have been unresponsive to startup pitches, even from warm leads. Reasons for this lack of response include non-matching investment theses, difficulties in accessing contact information, the need for anonymity during the review process, lack of liquid capital for investment, and the fundability of some companies.
Startup founders are advised to ask investors about their investment thesis before pitching, verify contact information, refrain from repeatedly asking for updates, consider if investors are currently deploying capital, and seek unbiased opinions on their startup’s fundability. The industry is ripe for disruption through technology, with Generative AI already providing tools to make pitches and data rooms more efficient.
Ultimately, successful startups are those that research and qualify their leads in advance, tailor their pitches to each investor, and allow investors to navigate the review process at their own pace without constant follow-ups.
Author: Brian Penick
