Loading VC Jargon Translator...
VCs speak their own language. Here's the honest translation of the phrases founders hear most — what they really mean, and what to do when you hear them.
| What VCs Say | What They Mean | What to Do |
|---|---|---|
| We love the space | We don’t love your company | Ask what would change their mind |
| Let’s stay in touch | This is a soft no | Ask for specific re-engagement criteria |
| The timing isn’t right | You haven’t hit the milestones we need | Ask what milestones would change timing |
| We need to see more traction | Your current numbers don’t justify valuation | Get a concrete traction target |
| We’re doing work on the space | We may be talking to competitors | Ask about existing portfolio conflicts |
| We typically lead rounds | We won’t follow or give you a small check | Find a lead before coming back |
| Excited to follow your journey | We’re passing but want optionality | Remove them from your list |
When a VC says they have ‘high conviction,’ it means they believe strongly enough to invest. Low conviction means they like it but won’t write a check. Conviction is what gets deals done — everything else is diligence theater.
The right to maintain your ownership percentage in future rounds. Investors fight for pro rata in hot deals. Losing pro rata is often a signal of diminishing confidence — winning it is a signal the investor wants more exposure.
SAFEs are uncapped promises to convert at a future price. Priced rounds set a valuation now. Founders prefer SAFEs for speed; sophisticated investors prefer priced rounds for clarity. YC popularized the post-money SAFE.
Early-stage VCs typically want 10–20% ownership for their check size. Seed funds target 5–10%. If a VC asks ‘what’s the round size?’ they’re calculating if they can hit their target ownership. Structure your round to give them that.
‘We’re doing work on the space’ is VC code for ‘we might be talking to your competitors, and we haven’t decided if we want to back you or them.’ It can mean genuine interest paired with competitive diligence, or it can mean they’re building a thesis and you’re a research call, not a real prospect. Ask directly: ‘Do you have any existing investments or active diligence in this space?’ The answer will tell you where you stand.
When a VC says they ‘typically lead rounds,’ they mean they write the largest check, set the terms, and take a board seat. They are signaling they will not participate as a follower. This is important: if you approach a lead-focused fund hoping for a small check to fill your round, they’ll pass. Always know whether a firm leads or follows before pitching, and approach them accordingly.
Common soft rejections in VC jargon: ‘Let’s stay in touch’ (no), ‘We need to see more traction’ (not now, maybe never), ‘The market timing feels early’ (we don’t believe), ‘We love the team but not the market’ (we’re passing), and ‘We’re heads-down on our current portfolio’ (we’re not interested). Hard rejections are rare — most VCs avoid burning bridges because they know founders talk. Read between the lines.