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Clujso (David)
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Starting my investing journey, I was afraid to pass on a founder, for many reasons. You might have FOMO, or you might just feel careful about the founder’s feelings. After all, they are spending order of magnitude more time and thinking on it than you. I’ve come to the conclusion that there’s different types of passing: 1/ ‘Soft’ pass: It’s when the investor doesn’t necessarily mention that they will pass, but the founder never reaches out to ask the investor’s position. This is ok. It mostly happens when the founder is not able to gather around enough fundraising traction, and investors expect founders to come back with a better respond and assess again. wrong, and being reminded that you might be wrong and change it.
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Clujso (David)
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2/ ‘Hard’ pass: This mostly happens after a big major ‘red flag’ during the diligence process, mainly a lack of founder market fit, lack of ability to ship, or just a lack of sustainability in the model. It’s neccessary to mention the reason. 3/ ‘Keep the door open’ pass: This is the hardest one. It’s when an investor was conflicted on the decision at some point, and decided to pass (for now). The important part is that founders will be able to re-engage these investors in the future, and maybe convert some of them. Regardless of the type of pass, during and after the process, its important to be transparent on your thoughts and feedback. After all, as an investor you have specific views on the world, and even specific products you’d like to see out there. Being clear and mentioning this is always a great way to remind yourself that passing is not
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