Working With Founders

How an investor can genuinely help a founder after investing, the difference between support and interference, and what founders actually want from their investors.

Being useful without getting in the way

Lessons

• The most useful help answers a question the founder is actually asking — Investor help works best when it responds to a founder's stated needs. Advice that is not requested often costs founders time and attention, even when it is well meant. (9 min)
• Answering quickly and making good introductions are worth more than most strategy advice — For most investors, the highest-value contributions are cheap to give: fast replies, relevant introductions made carefully, and being reliable when a founder needs a reference or a decision. (10 min)
• Every request an investor makes is a cost the company pays — Custom reports, frequent calls, unsolicited questions and conflicting advice from many investors can take a meaningful share of a founder's time. Good investors minimise the work they create. (9 min)
• In a crisis, small investors help most by being calm, fast and clear about what they can offer — When a company faces a down round, a restructuring or a shutdown, investors can make things better or worse. Clarity about your own capacity, prompt decisions and restraint from blame are the most useful contributions. (10 min)
• Recruiting help is the most requested and most valuable thing investors can offer — Founders consistently rank hiring as their hardest problem. Investors who make relevant introductions, take reference calls and help close candidates provide help that is specific, asked for and hard to buy. (10 min)
• What you learn in one company is not yours to use in another — Investors see confidential information across companies. Handling conflicts, competitive overlap and confidential data properly protects founders, your reputation and your ability to keep investing. (10 min)

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