Learning the Jargon: What Venture Capitalists Really Mean

Venture capitalists assist new, small businesses with capital and help them to enter the stock market. This is an invaluable and asset and while the superficial aim seems to be to help people, there is a level of deception in how small businesses are spoken to to ensure that the VC also comes out on top. Words can easily conceal deeper meaning that shows what the speaker truly intends. When it comes to business, it was essential to know if a VC is trustworthy or not. Here you can find common phrases used by venture capitalists that will help you to fully understand their meaning and intention before making a decision.

  1. “It’s too early to make a decision yet” – This means that they cannot see why they shouldn’t invest, but don’t want to appear overly eager.
  2. “We need driven founder who are dedicated to the mission” – They need founders who will work unreasonable hours to ensure their success (and yours).
  3. “When is your round closing?” – How long are you willing to wait for them to make a decision.
  4. “Are you speaking to anyone else?” – They want to know who your other options are and will probably contact them to discuss you.
  5. “Do you have any other investors in this round?” – VCs are hesitant to support new businesses when no-one else wants to support you.
  6. “(other investor) and I go way back!” – They may not actually be on close terms with this person but want to appear as though they know people you already approve of
  7. “Unfortunately we cannot invest with you at this time, but wish you all the best for the future” – They are not interested in investing with you but want to keep your relationship amicable in case your business becomes successful.
About Prof Janek Ratnatunga 1129 Articles
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.