This is a subscriber-only article.

For a limited time, join Entrepreneur+ and save 50% during our Cyber Monday sale. Use code SAVE50.

Join Now

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

The Bright Side of a Bad Pitch VCs hear it all, but the bad ideas can be as worthwhile as the good ones.

By Sam Hogg

This story appears in the November 2015 issue of Entrepreneur. Subscribe »

Shutterstock

Like people in any business, we in the VC world love to exchange horror stories. Ours tend to focus on absurd pitches: perpetual-motion machines, kitten sweaters and everything in between. Our cumulative experiences would rival the gag reel on Shark Tank.

Despite this, we do our best to educate -- not humiliate -- founders. It's our job. People invest millions with VC firms so that we'll go out and find the next Facebook or Uber. That means taking meetings -- lots of them. Conversations with entrepreneurs are the lifeblood of our business. We spend most of our time listening to far-fetched pitches, but doing so makes us better. That's because venture capital is a numbers game, and reviewing as many ideas as possible, including the bad ones, helps us identify the ones that just may strike gold.

It's common for VCs to pass on an opportunity multiple times before investing. But with each refusal comes feedback and an understanding that the door is open to pitch us again. This may seem like an agonizing way of getting to "Yes," but we do it in part to see how a founder responds. It's a good indicator of coachability and a look into how an entrepreneur will deal with customers, partners and co-workers.

Editor's Pick

Related Topics

Business Plans

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."

Business Plans

How You Can Use the 80/20 Rule to Unlock Success and Maximize Your Impact

Our success is determined by where we focus our efforts.

Business News

Google Is Mass Deleting Accounts This Week — Here's How To Make Sure Yours Is Safe

The company is reportedly removing inactive accounts on December 1.

Science & Technology

Police Issue Warning About iPhone's 'NameDrop' Feature

How to safely manage the iPhone's latest feature and understand how the technology works.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.