How do you deal with feedback and criticism from VCs who doubt your founder-market fit?

First, listen. It's easy to become defensive after all your sacrifices as an entrepreneur. Best strategies include active listening, meaning, ask clarifying questions: "What makes you think so? Have you seen that happen in other startups? How did they deal with it?". This will "buy" you time to reflect before responding as well as gain insights on what's truly behind their feedback or observations. LISTEN first. Think before you speak. Mind over mood.

Before entering into any partnership you listen, respect and learn to know each other. This should be valid both for the investor and the founder. Both can choose to be open about their strength and weaknesses. If so, there is a good chance to find out if there is a investor-founder, founder/investor-market fit.

When VCs doubt if I'm the right fit for my business, I try to understand where they're coming from. Fundraising is tough, and it involves a lot of rejection and advice. I don't let it shake my confidence. I see every feedback as a chance to learn and improve. It's important to listen carefully to what VCs are saying without getting defensive. I ask questions like "Why do you think that?" to understand their concerns better. I focus on my strengths and show that I'm willing to learn and adapt. Not every VC will be the right match, so finding investors who believe in my vision is key. Remember, it's not just about getting money; it's also a chance to grow and get better.

At the end of the day, you need to understand the POV of the VC, but also walk from the conversation with the same conviction you came with. Try to see why the feedback was given, and go to work. Most VCs will tell you why you are wrong. So keep driving your goals and plans for your business and clients.

Venture capitalists deal with so much uncertainty when investing in startups. There's, of course, a familiarity bias when investing in founders who've been in those markets before, even though, rationally, there might be no difference in outcome. Constantly proving your love for the community of customers you have and expertise on market needs through events, happy customers, and case studies can help improve your stance with the next set of venture capitalists you speak to.

As someone who worked in venture, had conversations with many successful investors and founders on my podcast, and eventually founded my own company. I couldn’t highlight more about leveraging your unfair advantage and hiring your weakness. So many successful investors are looking for people that are AMAZING at one specific skill and partner with someone who are experts at whatever they are not so good at. Instead of being OK at everything, try to be the 1% at ONE thing is more important.

Drawing from my experience in the venture industry and numerous discussions with accomplished investors and founders on my podcast, I consistently emphasize the importance of capitalizing on your unique strengths and addressing your weaknesses through strategic hiring. Many prosperous investors actively seek individuals who excel in a particular skill, forming partnerships with experts in areas where they may lack proficiency. Rather than aiming for competence in multiple areas, prioritizing becoming exceptional in one specific skill proves to be more crucial.

NEVER GET DEFENSIVE. There is no right or wrong here; don't take it personally. There are multiple perspectives. I also don't need to have all answers right away; take the time to breathe, listen, think, and process. Thank for the feedback - whether you like or dislike it, agree or disagree. Ask clarifying questions. And schedule time to follow up.

The grains of salt are data points or feedback. Keep getting feedback until you reach precipitation or two phases. The precipitated business model is now fine-tuned and recalibrated. It becomes fundable. In other words, there will be a period of incubation of your idea until the dots are connected, or the business model is precipitated. It is a highly nonlinear process. Stay curious, humble, and persistent. You are another Steve Jobs in incubation. (Thread 3 of 3)

Feedback to startups from investors is always welcome, good and bad. If you do get granular feedback, embrace and learn from them, then recalibrate your investment thesis. Actively solicit feedback to fine tune your business. Six months from now, you’ll be surprised how much better and refined your business is. (See next thread 1 of 3).

Think about feedback as data points in a crystallization process, e.g. adding salt to water. In the incipient stage, grains of NaCl added to H2O will dissolve into solution. It is a clear liquid, indistinguishable from water to the naked eye. As the concentration of NaCl reaches the point of saturation, the last grain of NaCl added to the solution will cause precipitation of NaCl solid. Two separate phases appear (NaCl solid and solution). (See next thread 2 of 3).

There are creative ways to effectively fill gaps. If you’ve managed to overcome the domain expertise hurdle, partnering with a VC who recognizes this can be tough to find but lucrative for you both. If you don’t have domain expertise, consider tapping into “expert networks.” You can hire on an hourly basis so no need to give up equity. Do your due diligence to find a quality fit.

It takes two to tango. The same way many applicants miss the fact that an interview process is a two-way street, startup founders forget that in some cases VCs need them more than they need VCs. Don't focus solely on "being selected" by them; make sure you "interview" them and do your research; as much as in a marriage, this is not just "a check"; this is a long-term relationship so make sure you're comfortable with sharing your life with them!

Founder-market fit can be important, but so is founder-investor fit. Finding the right investors is a process comparable to that of dating or looking for a job: you need the match to be mutual for the relationship to work. No two VCs are the same. Somewhere out there is an investor who appreciates your strengths and knows how to help with your weaknesses.

Fundraising is hard because it can be a source of constant rejection and unsolicited feedback and advice. But it's the job of the founder to decide what to do with it. Confidence doesn't come from being sure of being right, but from comfort with the possibility of being wrong. Each data point is a chance to learn and grow. Know that every founder goes through this process. Even founders who might say in public that fundraising was easy will admit to the challenges when talking in private.

Fort de mon expérience avec des investisseurs asiatiques, j'ai appris que gérer les critiques sur l'adéquation fondateur-marché nécessite avant tout une écoute active et une communication efficace. Il est essentiel de présenter une vision claire tout en démontrant sa pertinence pour le marché. Apporter des données concrètes et des retours clients aide à valider le produit ou service. Un réseau de soutien solide apporte crédibilité et conseils, tandis que l'adaptabilité et la résilience sont cruciales pour naviguer dans les retours d'investisseurs et améliorer constamment son approche.

I see VC doubt as a growth opportunity, like a tough workout for a startup gym. I embrace feedback, dissect it for gems, and pivot if needed. Doubters are like spice; they make the success recipe more flavorful. It's not rejection; it's just an invitation to refine the pitch!

Com resultados! Nada fala melhor do que eles. Cuide do jardim e as borboletas (VCs) virão igual umas loucas atrás de ti. Acredite, tem muita gente vendendo projeto. Mas não tem muito projeto que mereça receber investimento. Tudo no mundo do dinheiro só para de pé com resultados. Então, sem romance e foca no que está sob seu controle. Pq receber investimento não está. Mas gerar valor e entregar resultados sim.

Sometimes what is apparent to us (Founders) may not be visible from an outside investor's perspective. We need to show resilience by helping VCs understand our background better and sharing insights from our domain knowledge with them to make them understand why we love what we do. Resiliently trying to communicate is the key.

Move on, There are hundreds and thousands of VCs. Do not waste time trying to change opinions. They either love you now and want to know more of it. Or they will love you later when you have traction and success, and might add you to their anti portfolio, or join new rounds if they have the structure. Takeaway, with a pinch of salt, what their perception is to understand if it is how you framed the venture, or their bias. If former taken stock and improve. If latter, ignore.

Feedback and constructive criticism is great if it is given by the right person. A person you have reason to trust and/or that you share your long term goals with. I believe it is good both for the investor and the founder to be honest about strength and weaknesses to be able to find the right fit. It is also a great start of a due dilligence of each other. Everything is very mutual!

Don't take the feedback personally and think about how you could act on it. Can you acquire or better demonstrate those skills and knowledge that you are missing? Should you be adding a cofounder or a team member with a different background? Can you grow without fundraising until you have traction and revenue to demonstrate?

Effective feedback and constructive criticism prove most beneficial when coming from a trusted individual with whom you share long-term goals. Open and honest communication about strengths and weaknesses is valuable for both investors and founders, fostering a mutual understanding. This transparency serves as a foundational step in the due diligence process, allowing both parties to thoroughly assess each other.

Escuchar atentamente a los VC proporciona información clave para ajustar tu enfoque. Reafirma claramente cómo tu producto o servicio aborda una necesidad en el mercado. Muestra con métricas y resultados tangibles cómo tu propuesta se traduce en éxito. Considera cada crítica como una oportunidad de aprendizaje. La adaptabilidad y disposición para mejorar son cualidades valoradas por inversionistas. Establece una relación abierta y constructiva con los VC. La transparencia y la disposición para colaborar refuerzan la confianza. Convertir la incertidumbre en un catalizador para el desarrollo es esencial en el mundo emprendedor. Al abordar las críticas con resiliencia y estrategia, puedes transformar las dudas en un camino hacia el éxito.