💰VCs Fall Asleep During Pitch Meetings and Still Invest
Founders Share Wild Stories of VC Sleepwalk Investing
TL;DR
Venture capitalists are known to nod off during pitch meetings but still invest. Founders report receiving term sheets from dozing VCs and varied experiences with follow-up support or ghosting.
VCs often fall asleep during startup pitches, yet some still invest in the companies afterward. This behavior has led to mixed experiences for founders, ranging from shock at being offered money by a sleeping VC to frustration when investors pull out last minute or disappear without explanation. Founders have reported receiving term sheets only to be ghosted later, with one founder blocking an investor after being asked to fire co-founders and take their stock. The fundraising process remains opaque, highlighting the power dynamics between VCs and founders.
Key Points
Multiple founders reported receiving term sheets after VCs fell asleep during pitch meetings, highlighting the unpredictable nature of fundraising (2023).
One founder's team declined investment from a sleeping VC and was shocked when offered money later, showing inconsistent investor behavior.
Sequoia partner passed on Cloudflare because he doubted a woman could lead the company; now it’s worth $87 billion with expected 2026 revenue of $2.8B.
A prominent investor suggested firing co-founders and taking their stock after initially offering investment, leading to founder frustration and blocking.
Recollections vary on VC behavior during fundraising, underscoring the opaque nature of the process and its impact on startups.
Why It Matters
Founders face unpredictable VCs who may invest despite falling asleep or ghosting afterward. This impacts fundraising strategies and trust in the industry. For example, a woman-led company was initially rejected but now has an $87B market cap.
Frequently Asked Questions
Why does this matter?
Founders face unpredictable VCs who may invest despite falling asleep or ghosting afterward. This impacts fundraising strategies and trust in the industry. For example, a woman-led company was initially rejected but now has an $87B market cap.
What happened?
Venture capitalists are known to nod off during pitch meetings but still invest. Founders report receiving term sheets from dozing VCs and varied experiences with follow-up support or ghosting.
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