Why Investors Say No (And Why That’s Not the End of the Story)

Earlier this year, Jamie Roberts joined Aleksandra King on the Beyond the Boardroom podcast to talk candidly about one of the hardest parts of the founder journey: hearing “no” from investors.

Jamie meets around 1,500 businesses a year and invests in roughly 1% of them. In the conversation, he lifts the lid on what really drives those decisions, why rejection is rarely as final as it feels, and what founders can learn from the conversations that don’t lead to a cheque. The result is a refreshingly honest look at how investors think, what they’re actually looking for, and why a “no” today doesn’t mean never.

Raising investment can feel brutally binary. You pitch. You wait. You get a yes… or, more often, a no.

But here’s the reality most founders don’t hear enough: when investors say no, it’s rarely a judgement on your ambition, your intelligence, or even your idea. More often, it’s about timing, fit, and readiness.

Jamie sees around 1,500 businesses a year. Roughly 1% receive investment.

That statistic can sound intimidating, but it hides an important truth: every conversation starts with optimism.

“We go into every opportunity with the mindset that we want to win it.”

Investors don’t open meetings looking for reasons to say no. They start by hoping this might be the one, while knowing they’re investing other people’s money and need to be disciplined.

The result? A lot of thoughtful, well-run businesses don’t get funded, at least not by that investor, at that moment in time.

A rejection rarely means a business won’t succeed.

More often, it’s because: – the timing isn’t right – the business isn’t quite ready for that type of capital – it doesn’t fit the fund’s strategy – or commercial terms don’t align

“Just because we don’t invest doesn’t mean the business won’t work or won’t work for someone else.”

Many of the businesses that don’t get funded go on to raise money elsewhere, or return later at a different stage.

One of the most common misunderstandings is what investors actually do once they’re on board.

“We don’t run businesses. We back people to run their businesses.”

Investors provide capital, strategic support, and perspective, but they aren’t there to replace execution. They won’t sell for you, build your product for you, or run day-to-day operations.

This is why some deals don’t happen.

“Some businesses want more from us than we can realistically give.”

Founders need to be clear whether they’re looking for an investor or an operator.

Self-belief is essential to building a business. Investors expect founders to be proud of what they’re building.

But there’s a line.

“You have to forgive founders for having confidence, they’re taking huge risks.”

Where things fall down is when confidence turns into over-claiming.

“Not knowing something isn’t a red flag. Deliberately misrepresenting it is.”

Investors don’t expect founders to have all the answers. They do expect honesty, curiosity, and openness to challenge.

Across hundreds of meetings, certain behaviours consistently stand out:

• founders who share information in advance
• clarity on what’s been achieved (and what hasn’t)
• realistic ambition, not hype
• openness about gaps and where help is needed

“Prepared founders make better meetings, and better long-term partners.”

Investment decisions are rarely about a single meeting. They’re about whether a relationship feels workable over five to seven years.

Raising capital isn’t about perfection. It’s about progress.

“The right conversation at the wrong time can still be valuable.”

Early discussions help founders: – understand what investors look for – sharpen their thinking – sense-check timing and readiness

And for investors, seeing more businesses improves decision-making, even when the answer is no.

The takeaway for founders?

Rejection isn’t the end of the story. Often, it’s just part of the journey.

“We only invest in about 1% of what we see, but we want to see the other 99 too.”
“People always matter more than products.”
“Honesty builds trust faster than confidence ever will.”
“Investment is a long-term relationship, it has to work on both sides.”

Entrepreneur Lab exists to help founders navigate the realities of growth not just the headlines. If you’re building something ambitious and want honest, experience-led insight, starting the conversation early matters.