How can you build trust with founders at networking events?

Let's face it, the best investors are the ones that have been in the founders shoes before. Why? Because they relate how soul-crushing entrepreneurship can be, the crazy roller-coaster, the grind, the financial stress, firing your friends, and borrowing money to your family.... Nobody prepares you for this. And only founders that have gone through this can fully relate. If you mention some of your battle scars to founders, they generally open up and feel understood. Thereafter it becomes much less transactional and much more human. A healthier foundation to develop a long term relationship.

When expressing genuine interest, venture capitalists should strive to understand the founder's personal journey. The struggles, the eureka moments, and the sacrifices they’ve made add depth to their entrepreneurial story. Remember, the goal is to connect, not to interrogate.

I've found success in VC by getting to know the founders as people first. People naturally enjoy talking about themselves and what makes them tick or excited. So, I ask questions to get to know their interests, and hobbies, actively listen, find common ground, and keep the focus on them. You learn a lot about how a founder thinks and operates based on their lived experiences and interests. I've heard and read anecdotes from several successful sales and relationship development pros that in your first interaction with someone, you don't talk business, you get to know them as a person, and then in the second interaction, you can discuss business. This helps establish rapport and begins to pave the way to trust for both parties.

Information sharing is a two-way street. VCs should not only offer insights but also be open to learning from founders. It’s often the founders who are closest to the emerging trends and cutting-edge innovations within their industry.

Trust is built on the expectation that words will be matched by actions. When a VC says they will make an introduction or provide feedback on a pitch, timely follow-through turns a verbal commitment into a trust-building action.

Founders value VCs who can deliver tough news or feedback with empathy and respect. Transparent dialogue, especially when delivering hard truths, can lay the groundwork for a strong, trusting relationship.

Understanding a founder’s communication style and preferences is critical. Some may appreciate directness, while others might prefer a more nuanced approach. Tailoring your interaction to respect these preferences is key to building a trusting partnership.

Building trust with founders at networking events, is an art blended with science. In my experience, a two key components stand out: Active Listening: It's not just about talking; it's about genuinely listening to what founders have to say. Understand their vision, challenges, and passions. This shows respect for their journey and builds a foundation of trust. Transparency and Honesty: Be clear about what you can offer and what you're looking for. Honesty in your intentions and capabilities goes a long way in building a lasting, trust-based relationship.

Consistency in interactions helps founders feel secure in the partnership. Venture capitalists should avoid fluctuating between being overly friendly at one meeting and excessively critical at the next. A balanced, steady demeanor is most effective.

Networking is just the beginning. Building trust requires VCs to invest time in getting to know the founders as individuals, understanding their personal and professional motivations. Sharing vulnerabilities and failures, not just successes, can also foster a deeper connection. Remember that every founder has a unique set of values and cultural backgrounds. Being culturally sensitive and showing a willingness to engage with and understand diverse perspectives can further strengthen the bond of trust.