Seed stage investors are presented with more potential deals than they can fund or even put through due diligence. In fact, there can be so many eager entrepreneurs with great sounding ideas, that most investors look for reasons to say “no.”
It’s not to crush dreams. They do it, first, to prioritize. Resources (money and especially time), even for venture capitalists and wealthy angel investors, are limited. Second, savvy investors know that the clearest product differentiator of pre-prototype deals is how well the entrepreneur’s solution aligns with the target market to solve that market’s needs.