Why Investors Say No

Kjøller’s founder, Magnus Kjøller, has published the book Why Investors Say No, giving entrepreneurs insight into the part of the investment process they do not normally get access to: what an investor is actually thinking when evaluating an opportunity.

Often, the worst part of being rejected by an investor is not the rejection itself. It is not knowing why.

Was the idea not strong enough? Was the valuation wrong? Was there something in the numbers? Or did something happen along the way that made the investor lose faith in the opportunity?

Over the years, Magnus Kjøller has reviewed more than 20,000 investment pitches. Kjøller has invested in many companies, but naturally, the vast majority of applications have ended with a no.

There are already plenty of books about pitch decks, term sheets and fundraising. But far less material about something that may be just as important: how investors actually think, and what causes interest to turn into doubt and ultimately into a no.

That is the starting point for Why Investors Say No.

In many ways, the pitching process can be compared to an exam. In principle, you start with top marks, and from there the challenge is not to gradually talk yourself down.

One mistake does not necessarily decide the outcome. But throughout the process, things are continuously being added to the scales: the numbers, the assumptions, the answers, the understanding of the market, the valuation and, not least, the investor’s confidence in the founder and the team.

At some point, the balance may shift from interest to doubt.

In Why Investors Say No, Magnus Kjøller attempts to open the door to exactly that part of the process. What does the investor notice? What builds trust? Which mistakes keep recurring? And what turns a maybe into a no?

The book is based on the patterns and mistakes Magnus Kjøller has seen repeatedly across more than 20,000 pitches.

No fillers or fluff. The focus is on concrete observations and practical insight that can help founders better understand what is happening on the other side of the table.

The book is aimed both at entrepreneurs who are currently raising capital and at those who want to be better prepared before doing so.

Why Investors Say No is available as an e-book, paperback, hardcover and PDF download.

Learn more here