I see pitches for M&A and investment almost every day. The decision to say yes or no to a pitch varies from project to project. At the core, you have to make a judgment call on the future likelihood of the project, giving you an exponential return on the investment you decide to make.
It could be that you like the idea and think that as we advance, it will yield high returns. Another time, it is the entrepreneur’s energy, enthusiasm, or qualifications. Sometimes, you invest because projects in a particular business segment are in vogue, and you decide to invest a small sum of money and see how it goes. More often than not, the VC’s decision to invest does not turn out to be right.
Therefore, from a startup standpoint, keep pitching to investors if you are convinced about your project. A bit of patience will attract interest. The initial investment is a leap of faith for investors and entrepreneurs. As the venture starts progressing, other factors like the number of customers you can acquire, growth in revenue, or your ability to manage the venture efficiently come into play.
The partnership between the investor and the entrepreneur should be beneficial to both. Both parties have a vested interest in ensuring the project does well. Both are partners and well-wishers to success and are willing to play their part in helping to make a project a success.