How do VCs help startups they reject?

Answer by Sae Min Ahn(안세민):

For me, the rejection alone is a valuable feedback data point the founders should take into account; if there is consistent red-flagging by VCs in similar vertical areas, that is a telling sign there might need to be a course calibration.

On a personal level, there are different degrees of "no"s and I suspect other VCs will be on a similar trajectory of reaction:

1. Some startups are playing in a very disparate field that is just out of my comfort zone; in this case I'll give a definitive "no" as I do not want to waste the founder's energy/resources on me
2. Some startups I like a lot but may be too mature or relatively far gone – essentially I'm in the course of becoming "dumb money" – in the process for me to smoothly push to my board; I'll make sure I take time to call up contacts and see if there are colleagues who can support such a deal
3. Some startups I like a lot but seem to have specific deficits – that I see – in either product, tech or overall roadmap; in such cases I'll make sure to track them throughout the months, provide them with connections, product brain-storming sessions with me or people I know and talk them through decisions making issues that might pop up

In the case of #3 especially, I try to turn that passive "no" into a "yes" over time – which I actually have for several investments – as they optimize their product/service and fit for market.

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