This is great, I’ll add the other side.

Why founders pass on VC funding: A thread.

(1/6) https://twitter.com/LeslieFeinzaig/status/1272975489645207552

They don’t need funding. They…
… have runway
… just raised
… are self-funded
… are profitable

In this case, provide actual value outside of financing.

(2/6)

They don’t like your offer.
… valuation is too low
… terms are unusual or onerous (e.g. vesting terms for founders)
… other investors refused to approve it

In this case, be less greedy.

(3/6)

They don’t like you because…
… you’ve invested in competitors
… you’re slow to follow up/follow through
… you’re a Russ Hanneman

I don’t think there’s any short term fix to this one.

(4/6)

And finally, they don’t want funding because:
… money comes with too many conditions
… they’re not ready for outsider involvement
… they’d lose control or suffer unnecessary dilution
… their goals are not aligned with yours (RE: lifestyle businesses)

No match here.

(5/6)

I've been hearing a lot of new entrepreneurs talking about raising VC funding before understanding their own goals.

Founders need to think about what their end goals are first, and then see if VC funding is the right means for those ends.

(6/6)