Something is clear, Venture Capital feedback often falls short.

We’ve supported dozens of founders through their fundraising journeys, from pre-seed rounds to late-stage negotiations with hundred of VCs and global growth funds. And one pattern keeps showing up: when investors pass, they often don’t express the real underlying reasons behind their decision. Whether it’s due to time pressure, hesitation, or discomfort, founders are left guessing.

Sarah Nolet (co-founder of Tenacious Ventures) captured this dynamic perfectly in her article, which inspired us to write this article : she passed on a founder due to concerns about ego and coachability, but when asked for feedback, she pointed to valuation instead. That disconnect between the real reason and the stated one is more common than it should be.

The result? Founders remain in the dark, unable to learn, adapt, or improve. And while it’s understandable, it’s also a missed opportunity (for both sides).

Let’s break down why feedback is often vague or missing altogether, why that’s a problem, and how both founders and investors can do better.

1. The unspoken rules of a VC “no”

Founders hear these phrases all the time. Here’s what VCs often really mean

• “It’s too early.” → We’re not convinced you’ll get anywhere, at least not with us on board.
• “We’re not sure about the market.” → We didn’t feel like doing the work to understand it, or your pitch didn’t make it feel worth it.
• “We’re focusing elsewhere.” → You didn’t excite us enough to make room in our pipeline.
• “We’ll keep an eye on your progress.” → We’re saying no, but nicely, don’t expect a call back.

• “We think you’re great, but we’re passing for now.” → Something felt off, maybe the team, maybe the pitch, but we’d rather not say.

Founders often don’t have the chance to get the real reason and as a result, missed an opportunity to grow. The investor, too, missed a chance to sharpen their own thinking by articulating it clearly. And that’s the real issue: clarity requires courage. Most investors are moving fast, managing reputation, and protecting future optionality.

Being honest risks conflict, misunderstanding, or awkwardness. So they hedge. They ghost. Or they disappear into polite, empty phrases.

2. Why it matters more than you think

Founders are expected to be coachable, resilient, and hungry for growth. But how can they improve if no one is willing to tell them what went wrong?

Here’s what vague feedback really costs:

• Lost learning moments : especially for first-time founders.
• Wasted energy : chasing fixes in the wrong direction.
• Fractured trust : if you ask for honesty and get avoidance, it sticks.
• Missed future opportunities : some founders won’t come back for the next round.

At Dups, we’ve frequently encountered the negative impact of VCs declining without clearly stating the underlying rationale. We regularly help founders regroup after unclear passes, confused by polite rejections, unsure what to improve. In some cases, it’s a storytelling issue. In others, a team misalignment, a misread of traction, or just poor pitch dynamics. Without real feedback, founders often focus on the wrong fix. The problem isn’t their ambition, it’s the fog around the “no”. Great founders want the hard truth. Give it to them, and many will surprise you.

3. Why VCs (rationally) avoid giving real feedback

But let’s be fair, there are good reasons investors hesitate to give the truth:

• Reputation risk : One misunderstood comment can echo across the founder community.
• Time constraints : VCs review hundreds of decks. Deep feedback is a time investment.
• Optionality preservation : Leaving the door open for later rounds means not offending anyone.
• Unclear internal consensus : Sometimes, the IC itself can’t agree on the why.

Still, for founders who’ve spent months preparing their deck, data room, and outreach, unclear responses can be disorienting, and prevent real progress.

4. What good feedback looks like? A two-way conversation

The best feedback isn’t a one-sided verdict. It’s a dialogue. When a VC decides to pass, the most valuable thing they can offer is clarity. And when a founder receives that clarity with openness and curiosity, it can lead to real growth, even in a “no.”

Let’s say an investor says, “We had questions about your go-to-market… It felt light for this stage.” A defensive founder might close the door. A growth-minded one might say, “Thanks for the honesty. What would a stronger GTM strategy look like in your eyes?”

Or the investor might admit, “We struggled to see a clear founder–market fit. Your passion is evident, but we didn’t feel your edge in this vertical.” That’s a hard message to hear. But a founder who responds, “That’s useful to hear. Was it the story, or something in my background that didn’t connect? Do you think we should have another CEO” turns discomfort into insight.

These moments matter. They build mutual respect. And they often leave the door open for future conversations, especially when the founder follows up, applies the feedback, and comes back stronger. At Dups, we’ve seen it repeatedly: the founders who treat feedback not as judgment, but as data, are the ones who learn fastest. Not by pleasing everyone but by learning to ask the right questions at the right time, even in rejection.

5. Dups’ final tip: Feedback is not a judgment, it’s a mirror

Whether you’re a founder or an investor, feedback isn’t about being right. It’s about being clear. And clarity builds trust. We often say: “fundraising is not a sprint, it’s a reflection exercise with capital at the end.” Every “no” is a chance to refine your pitch, your story, and sometimes, yourself.

So if you are an investor, next time you pass on a startup, say why. And if you’re on the receiving end, don’t just move on : ask, reflect, adapt. That’s how the best founders grow. That’s how the best investors build reputation. And that’s how we build a healthier, more transparent startup ecosystem.

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Do you want to build a sharper pitch or understand what’s really going on in your fundraising conversations? We’ve been on every side of the table : lawyer, investor, founder, advisor.

Let’s talk. One honest conversation can change everything!‍