My Venture Covenant With Entrepreneurs

My Venture Covenant With Entrepreneurs

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