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What VCs actually mean when they say your startup is “too early”

What does it actually mean when a VC says you’re “too early” to invest in? Is it a signal you need to do more, or just a soft rejection?
investor panel smartcompany growth summit melbourne
L-R: Rachel Yang, partner, Giant Leap, Paul Naphtali, co-founder and managing partner, Rampersand, Dan Krasnostein, partner, Square Peg, and Leila Oliveira, scouting manager, Antler Australia. Image: Phi Nguyen

A decent proportion of startup founders have heard a common, dejecting phrase while pitching VCs: “You’re too early”.

But according to Rampersand co-founder and managing partner Paul Naphtali, copping this particular brand of rejection is rarely just about timing. This is becoming all the more prevalent in a tighter funding market where risk is being scrutinised more closely.

Sometimes it’s a nicer way of rejecting someone. But it can also point to an issue with the product or pitch.

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