How can you build relationships with founders in a competitive market?

Early stage investors need to be honest and humble. Good founders are not invested they receive investment. I believe that founders, especially early stage, should carefully select their investors. They will be partners of their journey. Initially to get to the next step, but ideally beyond. Entrepreneurs should be able to due diligence an investor, asking their portfolio companies, but the initial contact, the first impression is fundamental. I try to start by asking "the right questions", challenge founders with "Radical Candor" (Amazing book BTW) voice your concerns being aware that you might be wrong or simply unaware of something and that some of the most innovative ideas were defined as crazy... so be open to learn and support!

In the early stages of a startup, one of the most helpful things to do is to offer them support through your network. This means connecting them with people who can offer advice and resources without expecting anything in return. Startup founders, initially, are juggling numerous tasks. When they receive research reports or insights, it's a big help. These tools can improve their business pitch and strategy. Helping startups not only aids them in their growth but also establishes your reputation. It's a great way to be respected among these entrepreneurs, and it often leads to long-term, meaningful relationships. This approach is about more than just networking; it's about building a supportive community that benefits everyone involved.

building a startup means managing scarce resources, conflicting priorities., esp. at the beginning. Being both a startup founder previously and now a VC partner (my case) gives an opportunity to offer fact based advice. It is about managing risks of doing some things too late( because you put your resources elsewhere) or focusing on things that give you comfort of solving a problem but actually could have waited ( they consume scarce resources). Usually founders are competent in the domain they are active, they have good leadership skills, but are not always trained to think about priorities and scarce resources. They sometimes choose poorly , having little experience in consequences of betting on one thing versus betting on another

Before investing any startup, I always have a probation time 3 months. If I feel the startup founder is suitable for my investment style, I will invest in the startup. The startup founder will have time to understand my ability, and they will give me a better term with other Example: When I joined Vuacua.vn - a leading crab restaurant in Vietnam, I spent 3 months of trial to work with them. And we were happy with each other. I join Vua Cua, and help them grow 42 stores of new brand Vua Banh Canh after 5 months.

- Networking: Connect at events, engage in meaningful conversations. - Collaboration: Identify opportunities for mutual benefit, e.g., joint projects, co-marketing efforts. - Respect & Empathy: Show understanding of founder's struggles, provide encouragement. - Provide Value: Offer help, introductions to potential customers, investors, or strategic partners. - Authenticity: Build relationships based on integrity and honesty. - Long-term Thinking: Focus on a lasting relationship, be patient and consistent. - Stay Informed: Keep up with industry news, founder's company achievements. - Follow Up: Regularly check in, attend events or meetings to catch up in person. - Be a Resource: Stay informed about new trends share with the founder.

Generally, founders are looking for someone to be a good steward of what they’re creating. Remember that the company you are considering investing in is a someone’s life’s work. The best founders have a love and passion for their company and their vision. Be honest and transparent about your role and expectations, but if you can show you respect what they’re building and want to be a part of their journey, you will form a far deeper connection.

In my experience, both the founders and investors should keep reasonable and time bound expectations. Developing reasonable expectations is an ever evolving process and mainly deals with investment terms.

Building relationships with founders in a competitive market requires genuine engagement and open communication. Start by actively listening to their vision and challenges, showing empathy and understanding. Be transparent about your intentions, capabilities, and limitations as a partner or investor. Offer valuable, honest feedback and support, even when it's not in your immediate interest. Consistently follow through on promises to build trust. Additionally, respecting their time and boundaries, and appreciating their entrepreneurial journey helps foster a respectful, collaborative relationship. Authenticity and transparency in these interactions create a foundation of trust, crucial for long-lasting, mutually beneficial relationships.

Building robust relationships with founders in a competitive market is a nuanced process that goes beyond financial investments. It involves establishing trust, providing value, and aligning with the founder's vision. Here are essential strategies to foster these relationships: Authenticity and Transparency: Genuine interactions and clear communication build a foundation of trust. Be honest about your intentions and capabilities. Understanding Their Vision: Invest time to deeply understand the startup's business model and long-term goals. Meaningful Engagement: Regular and meaningful interactions are crucial. Offer insights and be available for discussions beyond just financial performance.

Andreessen Horowitz, exemplifies authenticity and transparency in investor-founder relationships. Co-founders Marc Andreessen and Ben Horowitz are known for their clear communication and honest feedback with startups. They focus on building trust and maintaining realistic expectations, rather than overpromising. This approach demonstrates the importance of authenticity and transparency in the venture capital world. By providing straightforward advice and respecting founders' visions, Andreessen Horowitz has built successful, mutually beneficial relationships, highlighting how these values are crucial for long-term success in the competitive startup ecosystem.

In a competitive market, building relationships with founders hinges on genuine engagement and providing tangible value. Approach each interaction with curiosity, aiming to understand the founder's vision and challenges. This means active listening and tailored guidance that resonates with their unique journey. Building trust is crucial; be consistent, transparent, and reliable. Small gestures, like being fully present in meetings and offering constructive feedback, go a long way. Also, leverage your network to create opportunities for founders, such as introducing them to potential partners or mentors. This approach positions you as not just an investor, but a strategic ally in their entrepreneurial journey.

Founders rarely need advisors and experienced professionals to try and teach them something new, rather to help facilitate the vision they already have.

Building a great personal or company IP that has a very clear message would be great! Highlight our resources and expertise in specific areas to attract founders

Uma das maneiras que um fundo pode agregar valor aos founders é através da introdu??o a outros fundos. Alguns dizem que os fundos só fazem isso, quando eles n?o est?o realmente interessados no deal, logo n?o teriam medo de ficar de fora da rodada, mas eu acho que esse pensamento n?o faz muito sentido. Isto porque tem um fator muito importante na psicologia humana que torna a a??o de fazer introdu??es algo no-brainer. Se ocorrer esta intro, a chance do fundador deixar quem fez a apresenta??o de fora diminui pois ficaria um crédito, além de uma boa impress?o que o VC teve o interesse legítimo de ajudar. Isso também vale para o fundo que recebeu a indica??o, que por reciprocidade deveria se esfor?ar para incluir quem o indicou no deal.

Leveraging your own experiences, both successes and failures, is a crucial way to add value as a venture capital investor. Sharing these lessons provides founders with unique insights and a competitive edge. It's not just about offering advice, but about giving them a roadmap to navigate similar challenges based on your real-world experiences. This personal approach helps founders avoid common pitfalls and fast-tracks their learning. Your journey, with its ups and downs, becomes a valuable asset to them. This level of transparency and willingness to share your experiences not only differentiates you as an investor but also establishes you as a trusted advisor and integral partner in their entrepreneurial journey.

In my experience, following up regularly is one of the best way to maintain relationships with the founders. Making a follow up schedule helps to ensure that there is constant touch between the founders and the investors.

Once you have reached the goal of contacting a founder, the most important thing is to follow up and be in regular contact with them. Showing interest in the evolution of your company and discussing how developments in the sector could affect its management (risk or opportunity) is something highly appreciated by the founders. My recommendation is to include in the agenda to look at the sector and set alarms from the company and others on LinkedIn and on research websites of the sector in order to be attentive to the movements in it and in this way develop a systematic approach to the founders.

Richard Branson's saying, "Business opportunities are like buses, there's always another one coming," underscores the need for investors to stay close to entrepreneurs. This continuous engagement allows investors to support and guide founders through each phase of their journey, building a deeper and more meaningful relationship. In the fast-paced startup environment, such sustained interaction ensures that both parties are ready to seize new opportunities as they arise.

This is a trust based business. Earn trust , build on previous contacts with people who can recommend you. Walk the talk, deliver what was promised. Being a startup founder helps a lot ( this is my case) because you really know what founders are struggling with. Share your experience, also when it comes to admitting failures.

LinkedIn's early success, fueled by network-based referrals, demonstrates the value of this approach in venture capital. Investors should leverage their networks to gain referrals to startups aligning with their investment criteria. These introductions often come with an inherent trust, facilitating smoother initial engagements. In a competitive landscape, a referral from a trusted contact can provide a distinct advantage, making the process of finding potential investments more efficient and effective. This strategy harnesses the power of a well-connected network, essential for identifying promising opportunities in the dynamic startup ecosystem.

Learning is the most important thing in a long-term relationship with a founder. Understanding what motivates him, what makes him happy, how he relates to people, what his virtues are and what he suffers from will allow us to help him develop his potential and add to his strategy with the start-up and be able to motivate him when difficult times come, which in the development of a start up always appear at some point. This will result in mutual benefit and the development of new relationships.

Agreed. We had a great chat about this the other day (look forward to continuing the discussion btw). The iteration process in the approach as the market validates or rejects new concepts - and its impact in the overall strategy and relationships - is fascinating and testing at the same time.

Building trust with founders also means following through, so do what you say without fail, so they learn they can rely on you like a good friend in this dog-eat-dog startup world.

Make sure you first understand why you want to stay in contact with the founders, what is it that attracts you to the company? What what do you like about them? What don't you like? Are they at the right stage for you? The right team? Size? etc. Once you understand this, you will be able to create a better relationship with the founders by being honest and potentially work together on the topics to improve to create real, lasting relationships