There is a false dogma around the VC/Entrepreneurship relationship…supported by bad behaviors on both sides. You feel a need to manage your investors & board, to not show weakness and present to us. We fail to fully listen, dictate desires or fears and financially optimize our investments. Trust and open communication are our most precious assets which we squander away as a result. In reality, we are on the journey together with a common enemy (Darwin). We must hang to together or “surely, we will all hang separately.” We need to optimize our chances for success, row together, remove unnecessary drama and minimize self-inflicted wounds (the majority cause of pre-mature death). Over the years, I’ve seen both the good and the awful with this relationship. So, here is my rough draft of a Covenant with My Entrepreneurs…
MY PROMISE |
MY EXPECTATION |
| Be committed to your personal & the company’s success | Be self-aware and embrace your blind spots |
| Respect that this is your company but provide guardrails & accelerants | Don’t self-optimize. Your employees and I depend on you |
| Show up rationally, empathetically and, “first, do no harm” | Don’t let fear or ego dictate how you manage and lead |
| Be open and frank in my communication | Be open and honest in your communications |
| Seek homework from you to knock down barriers & accelerate growth | Say “no thanks” when I’m not helpful |
| Respect your boundaries | Acknowledge when you need help or don’t know |
| Honor confidentiality | Embrace this as a partnership, not as a necessary Evil |
| Encourage experimentation, quick iterations and respect failure | Don’t feel obligated to carry the world on your shoulders |
This is great!