Getting rejected for funding by a VC is uncomfortable, but it’s not the end, because a VC who says no to you today is often the same person who funds you in twelve months.
How? Well, it all depends on what you do after a VC has said no.
Keet van Zyl, co-founder of SA’s Knife Capital VC, has been on the receiving end of thousands of pitches. He spent years in private equity at Investec before co-founding Knife in 2010, backing and exiting SA companies, from Quicket (to Ticketmaster), orderTalk (to Uber Eats), and businesses sold to Visa and General Electric.
Here's how he says you can get a funding yes from a VC that already said no before.
Most rejections are timing calls, not verdicts
The first thing to understand is why VC’s actually pass. Founders assume it's about the business being wrong. Sometimes it is, but often it's about mandate, fund cycle or traction; all of those things are fixable or they simply change over time.
"We have a watch list. We re-engage with companies we rejected because they were too early or for another reason. We follow up a year later: how are you doing now?"
Knowing this changes how you respond. You're not defending a failed pitch, you're managing the start of a longer relationship.
How to get a funding yes from a VC that said no previously
1. Ask what specifically would change their mind
The most valuable thing you can do in the rejection conversation is understand the precise objection. Not a general "we're not investing at this stage", but what would need to be true for them to say yes.
Is it a traction number? A specific market they need to see you penetrate? A hire they want to see you make? The answer to that question gives you a roadmap. Without it, you're building in the dark.
Keet is clear that this conversation, handled well, can itself become the foundation of the relationship. He described a founder who came back after a rejection and asked for a coffee, not to argue the decision, just to understand it.
2. Diagnose whether the no is timing or structural
A timing rejection means the VC believes in the business, but the conditions aren't right yet. It’s too early, there is not enough traction, the fund is deployed, or the mandate doesn't fit right now. These are recoverable. Keep building, hit the milestones they mentioned and re-engage.
A structural rejection means something fundamental doesn't fit: The market isn't large enough, the model doesn't support a VC return profile or the business is built to be local rather than scalable. These are harder to recover from, and the honest move is to ask whether a different type of capital (angel, bootstrap, debt) is a better fit.
Knife Capital is explicit that it's not in the business of unicorn hunting. The fund targets 5x to 10x returns on businesses with real SA market penetration and global or dollar-revenue potential. A great business that's permanently local might be a fantastic business, just not a VC-fundable one.
3. Ask for a warm introduction, not a reconsideration
If the rejection is structural, when the business genuinely doesn't fit the mandate, don't push for a second look. Ask for a door instead.
The SA VC ecosystem is small and well-connected. A VC who can't invest, but believes in you, is still one of the most valuable relationships you can have, because they can put you in the room with someone who can.
"We only do a few deals a year. We reject hundreds. If we really like an entrepreneur, but we can't do the deal, it's better for our brand to forward the deal: 'Do you mind if I connect you to another angel or VC?'"
4. Reframe how you present progress
When you re-engage, whether in a follow-up meeting or an investor update, the framing of your progress matters as much as the progress itself. Keet is direct: SA founders undersell.
"South African entrepreneurs are too humble. Instead of saying 'the product isn't complete yet,' rather say: 'Our product development process has six phases. We are at phase four of six.'"
The facts are identical, the story is different. Build your re-engagement narrative the same way: not as a correction of what was wrong before, but as a coherent arc of a business that's been moving in exactly the direction the VC hoped to see.
5. Push for a clear ‘no’ over a slow ‘maybe’
The worst outcome of a VC conversation isn't rejection; it's a soft ‘maybe’ that strings you along for months without resolution. Keet's advice: push for a definitive answer, even if it's no.
A no now is useful. It frees you to move on, approach other funds or re-engage in twelve months with something real to show. A "let's stay in touch" that goes nowhere wastes everyone's time and erodes your confidence in the business.
"A no now doesn't mean no down the line. Just push them in a direction so it stops wasting everyone's time."
Want the full playbook?
This post draws on The SA VC Funding Landscape, a full masterclass from Keet van Zyl available inside the Founder Collab. The full session goes much deeper. Here's what's inside:
How the 2-and-20 fund structure works and what it means for what VC’s actually need from you
How to structure a pre-revenue seed round using convertible notes and SAFEs
What Knife Capital specifically looks for in founders, products and markets and how to frame your pitch against those criteria
How to build momentum in a pitch without overselling (and the sensitivity analysis VCs run on your projections)
The real difference between SA VC and Silicon Valley and why that changes your fundraising strategy entirely
The Founder Collab has 40+ masterclasses from SA's best operators across sales, UX, fundraising, paid media, automations, and more. Join The Founder Collab to access the full session.
