[chicagogal]

I've heard the phrase "keep me updated" before ;) Perhaps they don't want to give honest feedback in case they later turn out to be wrong and want in?

[kgilpin]

It's a fairly honest reply. It means "you're not there yet". It's far from Yes, but it's not No; and a future Yes is not likely but not impossible.

You could try asking for specific things that require improvement but I don't think you'll get a useful answer in most cases. You'll hear some words back but all they will mean is "I am not in love with your company".

[rpedela]

That phrase is VC talk for no.

[abalashov]

To the point of the sibling comment, I think "no, at this time" is more accurate.