While being monitored, as described in my post Why VCs Don’t Always Cut You Loose, is not the ideal outcome for entrepreneurs it’s better than being rejected. If you are in this situation, take it as a sign that investors see most of what you see.

There are two things that you should do in this situation to move the process forward. First, you should continue to pursue other investors. However, be careful not to oversell the interest of the VC that is monitoring your company, as this could hurt you.

Additionally, you should do your best to give the investor the information that they need to get to ‘yes’. To do this you first need to listen. If you understand what is giving the VC pause you can try to overcome that concern by providing them with additional company information. For example, if a VC is concerned about consumer adoption of your product you should acquire customers and share your performance with the VC.

Lastly, if you can adapt your business model to remove their concerns, that’s another great solution. It will show them that you listen and can evolve.

Ultimately be positive, this is usually a sign that you are onto something likely to be worthwhile.