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What Are the Next Steps When an Investor Wants to See Milestones Before Committing?
Learn the best strategy for responding when an investor says “Not until…” after your pitch. Discover how to clarify milestones, maintain communication, and turn a conditional “no” into a long-term opportunity for funding.
Question
What should you do if an investor says “Not until…” after your pitch?
A. Immediately send them your full financial model
B. Assume they are not interested and stop following up
C. Ask them to define specific milestones and request permission to send updates
Answer
C. Ask them to define specific milestones and request permission to send updates
Explanation
This helps you stay on their radar and show progress.
An investor responding with “Not until…” is providing a conditional objection, not a final rejection. This response is an invitation to continue the conversation once the company has made further progress. It indicates that the investor sees potential in your venture but requires more evidence or “de-risking” before they are prepared to invest. Your goal is to transform this ambiguity into a clear, actionable plan.
Turning an Objection into a Roadmap
The most effective response is to engage the investor in a dialogue to understand their specific concerns. Asking them to define the exact milestones they need to see demonstrates that you are proactive, coachable, and serious about building a relationship. These milestones could relate to various aspects of the business, such as:
- Product Development: Reaching a specific feature set or completing a beta trial.
- Market Traction: Acquiring a certain number of customers, achieving a target revenue run rate, or securing key partnerships.
- Team: Hiring for a critical role (e.g., a CTO or Head of Sales).
- Impact Metrics: For impact investors specifically, this could involve validating a key assumption in your theory of change or developing a more robust system for measuring social or environmental outcomes.
By defining these milestones, the investor gives you a clear roadmap to a potential investment.
Maintaining the Relationship
After clarifying the milestones, requesting permission to send periodic updates is a professional way to keep your company on their radar. This approach is respectful of their time and establishes a framework for future communication. A regular, concise update showing progress against the agreed-upon goals reinforces your credibility and demonstrates your team’s ability to execute. When you successfully hit the milestones, you can re-engage the investor from a position of strength, having fulfilled the conditions they set themselves.
Why the Other Options Are Incorrect
A. Immediately send them your full financial model: This action is premature and fails to address the investor’s specific feedback unless the milestone they requested was directly related to the financials. It can be perceived as a generic, non-responsive follow-up that ignores the conversation that just took place.
B. Assume they are not interested and stop following up: This is a significant mistake. A conditional “no” is a valuable form of feedback and a clear sign of potential interest. Abandoning the conversation means giving up on a warm lead who has provided you with the exact criteria needed to earn their investment.
Negotiating with Impact Investors certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Negotiating with Impact Investors exam and earn Negotiating with Impact Investors certificate.