When people hear, and an entrepreneur specifically, the fact that I say to them it’s sad but you’re not fundable, the instant thing that they go to is that they feel like I beat their dog. And the fact is, that’s not the case at all. There are many great, great businesses out there that are not fundable. Fundable by definition means that you fit the optics of that investor. And the optics, once again we’ve already established, are different from investor to investor.

But most of the time when I say to someone or to an entrepreneur, ” listen, what you’re doing is not fundable”, that doesn’t mean – and I try to follow it up right away with – that doesn’t mean you can’t build a business that you really like here. It just means that you probably can’t build a fast, scalable, hundred million dollar valuation business in the next three years. That’s what it means to be fundable.

Think of all of the businesses out there in the world where if I handed you a business that says you have five million dollars in revenue and you make a million dollars a year in profit, and all of that goes to you as a founder, that’s probably a business that you’d like. Well, guess what, that might be a business that’s not remotely fundable. Fundable is not a negative word, it just means you’re a different type of business with a different dream.

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