Key takeaways
- Reply quickly. A fast no is more useful to a founder than a slow maybe.
- Give one real reason. Don't invent a softer one.
- Invite them back only with a specific milestone you would act on.
- Say what happens to documents they shared.
Pass email template to copy
Choose the version for the stage the founder reached. The later the stage, the more reasoning they have earned.
VERSION 1: OUTSIDE OUR THESIS (after an application, no meeting) Subject: Your application to [Fund name] Hi [first name], Thank you for applying to [Fund name] with [Company]. We've read your deck and decided not to take it further. The reason is fit, not quality: we invest in [stage, sector or geography from your thesis], and [Company] is [the specific difference]. We'd rather tell you that clearly than keep you waiting. [Optional, only if true: Founders building in this area sometimes speak with [type of investor], who focus on it.] Best of luck with the raise, [Name] VERSION 2: AFTER A FIRST MEETING Subject: [Company] and [Fund name] Hi [first name], Thanks again for the conversation on [day]. We've discussed [Company] as a team and decided not to invest at this stage. The main reason: [one specific, honest reason, e.g. we weren't able to get comfortable with how quickly customers move from pilot to paid contracts]. [Optional: If that changes, for example [the milestone], we'd be glad to hear from you.] Thank you for the time you put into this. [Name] VERSION 3: AFTER DILIGENCE Subject: Our decision on [Company] Hi [first name], Thank you for the work you and the team put into our diligence over the past [weeks]. I'm sorry to say we've decided not to invest. I'd like to give you our reasoning, because you've earned it: - [Reason 1, specific] - [Reason 2, if there is one] We'll delete or return the documents you shared, in line with what we told you at the start. [Or: We will keep them for [period] and then delete them.] If it would help, I'm happy to talk this through on a short call. [Name] VERSION 4: NOT NOW, AND WE MEAN IT Subject: [Company]: not now, and here's what would change that Hi [first name], We've decided not to invest in this round, but we'd like to look again. Specifically, we'd want to see [measurable milestone] by around [month]. If you get there, please write to me directly and I'll make sure we take a fresh look. [Name]
When to send a pass
As soon as the team has decided. Many funds set a reply target for applications, such as two weeks, and keep to it. After a meeting or diligence, a call before the email is courteous, but follow it with the written version so the founder has the reason in writing.
What to change
- Name the specific thesis criterion in version 1, using words a founder recognises.
- In version 2, choose the reason that actually decided it, not the easiest to say.
- In version 3, match the document sentence to what you told founders at the start of diligence.
- Sign with a person's name, not the fund's name alone.
What to leave out
- "Too early for us" when the real reason is something else. Founders act on what you tell them.
- "Keep us posted" if you won't read the updates.
- Long critiques after an application-only review. You haven't earned that depth yet.
- Comments on the founders as people. Talk about the business and the evidence.
Sending passes with or without Delsivo
These emails work from any inbox. In Delsivo, people decide every pass and approve every message to a founder before it is sent; the AI never declines a founder on its own. Tracking passed deals and revisit dates is planned for a later release; until then, keep a revisit milestones note for deals you want to see again.