Entrepreneurs and Investors!
Entrepreneurs need to remember that investors are their partners - we are both emotionally and literally invested in your success, so please feel free to reach out in case you require any help.
The problem is that when things aren’t going well, entrepreneurs are scared to tell the investors the truth because they are worried they will beat upon them!
Yes, it’s true we may get upset but it's better that we do that in a one-on-one meeting, where you have been honest with us rather than surprise us with bad results at a board meeting, where everyone will then gang up on you.
Hiding the truth just creates a lot of tension and unhappiness for everyone and will blow up in your face in the long run.
You don’t have to think of yourself as a superman - when we give you money, we are also happy to share our network and expertise with you - please make use of it by treating us as trusted partners.
One of the reasons for the strained relationship between investors and entrepreneurs is the lack of trust.
Many founders have heard horror stories of how investors have taken over control of the company from the entrepreneur and they are never sure if they really have their back when things aren’t going well.
Similarly, investors have burned their fingers because of entrepreneurs who have hidden the truth from them or have siphoned off company funds.
We need to create a space of psychological safety, where investors and founders can depend on each other. The sooner this is done, the better for everyone!