Do Venture Capitalists Share Lists of Pitches They Have Received?

The short answer is no. If any venture capitalist (VC) decides to disclose a list of pitches they have heard, I would be genuinely surprised, as there seems to be a strong understanding that such transparency could have significant negative repercussions.

Why VCs Do Not Disclose Pitches

Firstly, the concept of a VC revealing a list of pitches they have encountered would signal numerous unhealthy implications to the startup market. If founders believed that a VC was about to disclose this list, it could create a couple of scenarios:

Struggling Companies: If a company is in the midst of raising a bridge round, revealing a list of pitches could suggest that they are struggling or facing difficulties. This could deter other potential VCs from showing interest in the company.

Multiple Rejections: If the company has been communicating with several VCs and receiving many "no" answers, revealing a list of pitches could further discourage other VCs from considering the company. It might also indicate to the market that the company is under pressure to close a deal quickly.

Both of these scenarios could lead to a significant drop in the number of founders expressing interest in meeting with VCs to discuss their ideas and business models. The essence of the startup ecosystem relies on trust and discretion, which are paramount for VCs in particular.

Competitive Privacy and Greed

A second major reason why VCs do not disclose their pitch lists is due to competitive privacy. As a VC falls in love with a particular deal or business idea, the natural human behavior of self-interest takes over. By withholding the list, VCs aim to protect the valuation of the deal and avoid unnecessary competition.

Therefore, even if a company is under consideration by multiple VCs, it is unlikely that any one of them would share this information. Revealing the list would mean that other VCs could jump in and potentially increase the valuation, which no one wants without a guaranteed win.

Other Considerations and Conclusion

While the reasons mentioned here provide a strong basis for understanding why VCs do not share pitch lists, it is likely that there are additional, nuanced factors at play. However, these two primary reasons—protecting the trust and discretion within the startup ecosystem and maintaining competitive privacy—seem to be the most compelling and relatable.

In conclusion, the confidentiality of pitches is deeply ingrained in the operations of venture capitalists. Recognizing the importance of trust, privacy, and competition, VCs maintain a strong culture of non-disclosure, ensuring that the market remains healthy and competitive for all stakeholders.