What happens to founders who say no?
33 founders turned down every offer, mostly over equity (21). The best offer they refused was a median 69% below their ask.
Giving up too much equity is the top reason to refuse
In 33 pitches the founder received at least one offer and turned all of them down. The most common reason was giving up too much equity (21 founders), then a valuation they found too low (13) and the terms or conditions (6). One founder may give more than one reason.
The gap was wide. In the 28 refusals where both numbers are known, the best offer on the table was a median 69% below the founder’s ask (the median is the middle value). These founders also asked for more: a median implied valuation of EGP 131M, against EGP 30M for all pitches.
Saying no is a real choice, not a failure. But if you arrive with a valuation far above the typical pitch, plan your answer to an offer that halves it before you walk on stage.
What was said
Founder
If we as founders give up a very large portion of our equity, it will affect the future of the business.
Masroofi (مصروفي) · S1 E3 · 13:31 · Paraphrased
Founder
Accepting 25 million EGP for 51% means the valuation becomes 50 million EGP, which isn't beneficial for any stakeholder among us.
InGene (إنجين) · S2 E6 · 21:12 · Paraphrased
Founder
The valuation gap is honestly very large, though I understand from your perspective you might see it as a business that's just starting out.
CLEO Foods (CLEO Foods) · S3 E16 · 21:38 · Paraphrased