“A quick no is the second best answer,” said an independent sponsor when chatting with prospective investors.
It’s so easy for an investor to say “maybe” or “keep me posted.” There’s option value in keeping the opportunity alive. It’s tempting to procrastinate (“I’ll make a final decision tomorrow”).
It’s much harder to say no. Nobody likes to communicate a rejection. Many investors just ghost the sponsor.
The high-integrity thing to do when someone has been generous enough to present you with an investment opportunity is to communicate clearly: explain what you need to move the ball forward, make a decision when you have the information you need, communicate feedback, etc.
