Why Some VCs Will Never Say Yes [And That’s a Good Thing]

Hi ,

If you’ve ever raised capital you’ve probably heard this before:

“Love what you’re doing. But it’s not a fit for us right now.”

Founders get vague rejections all the time—but here’s the real reason most VCs pass:

📈 It’s not about you. It’s about fund maths.

In VC, the economics are brutal. A fund has to return 3x (or more) to its LPs. That means most VCs are betting big on a small handful of outliers to carry the whole portfolio. If they don’t think your startup can return 20–50x, you’re out.

And that’s not personal—it’s portfolio logic.

What You Need to Know:

✅ Most funds expect 1–2 startups to return the whole fund. Everything else is gravy.
✅ That means a lot of VCs are only writing cheques to startups they believe can be billion-dollar outcomes.
✅ You might be building a $100M company—and still be “too small” for some funds.
✅ Investors have different mandates, timelines, and risk profiles. Don’t take a “no” personally—take it as a sign to refocus your outreach.

🚀 Founder Tip of the Week: Reverse engineer your raise. Before pitching a VC, ask: “What kind of outcome do they need to justify investing in me?”

🔍 What We’re Seeing in the Market: More founders are opting for investor alignment over investor volume. The best raises are built on fit, not fantasy.

📈 Fast Fundraising Fact: A $50M fund writing $1M cheques needs you to return $100M+—just to move the needle.

📖 Want the full breakdown? Read the blog: VC Fund Maths: The Hidden Logic Behind Why Investors Say No

🔥 Looking to streamline your raise (and stop pitching investors who were never going to say yes)? Let’s chat and get you talking to the right people.

Here’s to raising capital on your terms.

Amy and the Team @ Raaise

Powered by thousands of data-driven insights, our AI-enabled platform is designed to help founders run faster, more efficient and more cost effective capital raises by:

🤝 Matching startups with aligned investors—so you don’t waste time on the wrong conversations.
💥 Enabling direct connections through the right channels—getting your pitch in front of decision-makers, faster.
🏁 Streamlining the entire fundraising process—from first contact to due diligence—so you can spend less time chasing and more time closing.

🔥 If you’re ready to raise smarter, sign up here and take your funding journey to the next level.