Startups Stack Exchange Archive

Raising money from an incubator rejection email

• posted by: Esqarrouth on 2015-01-22
• tagged: ycombinator, yc-startup-school, applying
• score: 1

Which company is Paul Buchheit talking about in this quote and how does raising money from a rejection email work?

We actually even had one company that somehow managed to raise money off of their rejection email.

Paul Buchheit

Answer 3124

• posted by: Henry Taylor on 2015-01-22
• score: 2

Theoretically, if a rejection letter was complimentary enough concerning the potential of the proposed idea, stating that the rejection was based on factors outside of what was otherwise an investment worthy prospective, that letter could be used in subsequent funding attempts…

“As you can see, Paul Buchheit seriously considered investing in our company,…”

It is all in how you spin it?

Answer 3122

• posted by: Denis de Bernardy on 2015-01-22
• score: 1

Which company is anyone’s guess.

Based on the context in the video, raising money off of their rejection seems to mean either of:

1. They learned from the feedback and went on to raise money elsewhere; or
2. They learned from the feedback and re-applied successfully later on.

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