Saying no to investors can raise a founder’s status. When a VC asked a founder raising her first round for bi-weekly update calls, Iskender advised her to decline politely and offer quarterly email updates to all interested investors instead. This protects her focus and shows she is confident, not desperate, and talks to investors at eye level.
In a recent fundraising keynote I gave to diverse founders, a unique question came from a founder.
She’s currently raising her first round, and here’s the challenge she's facing: a VC she was talking to suggested bi-weekly calls to keep him updated on her progress. While this may seem harmless at first, it raised a crucial issue.
The situation may be unique, but the answer to it is applicable to many investor-founder relationships. If the relationship is managed in the right way, it will put the founder in a position of power and confidence, but if not, then it can become a massive burden.
Here's the deal: Imagine if 10 or 20 of the investors you approached would want to have a bi-weekly call with updates. Complying with requests like these can significantly distract you from your core focus, which is building your startup and building traction.
And more than that: every update with an investor is a chance to deliver good news about your progress. You can’t do that every two weeks!
Here's what I said: I found this request unusual, but there’s much to learn from this situation. I suggested that she should simply thank for the interest in getting regular updates but also clearly communicate her priority to remain laser-focused on her business, and…
The solution? She could suggest sending quarterly updates to all investors interested in her progress. With regular updates delivered via email, she can maintain control over her schedule while ensuring consistent communication with all interested investors with little time investment.
But this is much more than simple time management. Responding in this way positions her as a confident founder who values her time and the importance of her work. It subtly shifts the dynamic, showing that she is not obeying, not accepting every investor request, shortly that she is not desperate.
In the keynote, I emphasized the importance of interacting with investors as equals and never having or giving the feeling that they’re superior to you as a founder. By respectfully declining the bi-weekly calls, she's reinforcing this principle of being on the same level as the investor. It's a psychological win: saying 'no' in this context lifts her status in the eyes of the investor.
The key takeaway: As a founder, it's crucial to communicate with investors in a way that will position you at eye level with investors. And just don’t do bi-weekly update calls with investors in your pipeline :)
Frequently asked questions
Should founders agree to bi-weekly update calls with investors?
No. If 10 or 20 investors in your pipeline wanted bi-weekly calls, it would distract you from building your startup and traction. And you can’t deliver good news every two weeks.
What should a founder offer instead of frequent investor calls?
Thank the investor for the interest, explain that you stay laser-focused on the business, and offer quarterly updates by email to all interested investors.
Why does saying no to an investor help a founder?
It positions the founder as confident, shows they value their time and are not desperate, and reinforces that founders and investors interact as equals. In this context, saying no lifts the founder’s status in the investor’s eyes.
