Saying No

The author, a venture capitalist, argues that saying no to founders should be done honestly and with explanation rather than with vague excuses. He says he replies to most investment pitches with a no, often in one or two lines such as "it doesn't fit our investment strategy," though he admits these reasons are barely useful. He describes an old friend in the business who spent ten minutes explaining why his firm declined a deal, which he found very helpful. The author says the truth, even when it concerns the founder's ability to run the company, is the best approach, since vague replies like "my partners weren't into it" are worse.