You've just invested in a promising startup. How do you keep the founder relationship strong?
After investing in a promising startup, it's crucial to build and maintain a strong relationship with the founder. This relationship can greatly influence the startup's success. Here are some strategies to ensure a solid partnership:
How do you maintain strong relationships with startup founders? Share your insights.
You've just invested in a promising startup. How do you keep the founder relationship strong?
After investing in a promising startup, it's crucial to build and maintain a strong relationship with the founder. This relationship can greatly influence the startup's success. Here are some strategies to ensure a solid partnership:
How do you maintain strong relationships with startup founders? Share your insights.
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Foster a transparent and equitable communication environment by ensuring a seamless exchange of ideas while also contributing your knowledge and perspectives when appropriate. Collaboratively establish short, medium, and long-term objectives, and regularly assess and recognise the progress made in these areas.
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I went into business with a friend several years ago. We have weekly meetings and I value his input, even when it's hard to hear. Having that foundation of a friendship and trusting that he's looking out for our mutual best interest keeps our friendship strong and our business moving in the right direction.
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I think it is important to set expectations early in the conversation, pre-investment, and to have information rights outlined in the term sheet and shareholder agreements. There is nothing more frustrating for a minority investor in a startup than the deafening silence that follows the confirmation of funds received. At the very minimum, founders should provide quarterly updates and annual financials. Founders should also consider establishing an active advisory board, not just headline stars, but with people that can give time and consideration to be a sounding board for the founder, without the legal and fiduciary responsibility of a board of directors.
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Set Clear Expectations Early - Define communication frequency and reporting structure upfront. Align on key metrics, milestones, and governance without micromanaging. Be a Strategic Partner, Not Just an Investor - Provide value beyond capital—offer insights, introductions, and mentorship. Help with fundraising, hiring, and scaling when needed.
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As with many things in life: It depends. Meaning, if the founder is experience (serial) vs. first-time (funded) entrepreneur. In general, the less experienced require high expectation management-more everything, and your investment scheme has to accommodate this to get to the promised ROI. In my experience, founders hide anxiety, concerns from, well, everyone. Smart VCs know this is going to happen in advance of investment and begin establishing a coaching/mentor/trust relationship right away. It’s the same journey all trusted advisors must take with their clients. The money is the easy part: managing the fear [of failure or successes] and the emotions and consequences of said fear is where the real work lies…
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Maintain open communication, offer strategic support, respect their vision, provide constructive feedback, and celebrate milestones together.
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As soon as the check is written, make sure you continue to support the founder. And especially between funding rounds, make sure you check up on them (and not in a "how's my money doing" way). The founder journey can be really hard and lonely, so being an actual friend can lead to better, stronger relationships.
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Regular meeting with pre setup agenda. Not pushing my plans to Founders - rather become a listening partner first and guide them not force them to do anything. Be trustable partner
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To maintain a strong relationship with a startup founder after investing, yes, it is beneficial to focus on open and regular communication, providing valuable advice and support while respecting their autonomy, understanding their goals and challenges. But a transparent discussion of expectations before investing could be the most beneficial for all parties; "no surprises" is the term often heard.