What are some ways to build trust with founders when you are unfamiliar with their leadership style?
As a venture capitalist, you know that building trust with founders is crucial for a successful partnership. But what if you are unfamiliar with their leadership style, their vision, or their communication preferences? How can you establish rapport and credibility without imposing your own assumptions or expectations? Here are some ways to build trust with founders when you are unfamiliar with their leadership style.
Before you meet with a founder, do some research on their background, their industry, their competitors, and their goals. This will help you understand their perspective, their challenges, and their opportunities. It will also show them that you are genuinely interested in their business and that you respect their expertise. You can use this information to ask relevant and insightful questions, to offer constructive feedback, and to identify potential synergies.
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Hayal Koc
VP Sales @ Salesforce • Investor • Startup Advisor • Chief Member
After doing your homework, share what drew you to their company/leadership in the first place, express your confidence/trust in their idea and then...simply ask! Ask how they like to partner w/VCs, how they want to be supported, how often/which mediums, how they like to be recognized, questioned, etc. It says a lot about your humility when you genuinely ask, rather than making assumptions or putting everyone in a "founder's box".
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Brad Gaulin, P.Eng., MBA, CEPA
We make maximum-value exits possible by making businesses scalable to be salable™, & not dependent on the owners. CHANGE IS HARD, BUT NOT CHANGING IS FATAL!
Get personal. I used to segregate work and personal, then in a leadership program I took they taught us that to truly connect with people I had to become real, open up, let people know the real me and visa versa. Parking the business agenda to simply get to know each other I've found we always have things in common. Ultimately I needed to be vulnerable first, which demonstrates trust. Give to get. So make time to engage them in personal conversations, go for a coffee, learn about their past, interests, family, etc. and share yours. Deals are built on trust. We don't trust what we don't understand, so getting personal with the sole objective of better understanding them, without judgment, is essential to building a trust-relationship.
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Dr. RASHID ALAMERI
Founder & Chairman @ Group of Companies | PhD, International Relations l MENTOR I Author of Upcoming Book !
Research their background and company: Dive into their founding story, previous ventures, any public interviews or articles about them. Get a sense of their values, motivations, and past leadership choices. Read industry publications and reports: Stay updated on their industry trends and challenges. This shows you're engaged and have relevant knowledge. Talk to their colleagues or peers: If you have connections in their network, seek insights into their working style, strengths, and communication preferences.
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Edward Gustely
Managing Director of Penida Capital Advisors Ltd
it's said that 75% of communication is non-verbal, which is why I allocate considerable time with founders to build personal rapport and deepen the bonds of trust not captured through spoken language.
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AJAY JAIN
Managing Partner at Pantomath Capital Advisors Pvt Ltd
Understand challenges internal & external with regard businesses of the Group companies. Prioritize in attending them as per criticality. Cash is king, figure out how one can have clear strategy to free up cashflow blocked in various pocket such as inventory, receivables, loans, advances & investment. Focus on compliances & governances, regularize it wherever required. Investor relation & thereby market cap & wealth maximization of all associated with organization. while working on above action plan take team together. I am sure you are going to win trust of founder & top management.
One of the most important skills for building trust is listening actively. This means not only hearing what the founder says, but also paying attention to their tone, their body language, and their emotions. It also means asking follow-up questions, summarizing key points, and acknowledging their feelings. Listening actively demonstrates that you care about what they have to say, that you value their opinions, and that you want to learn from them.
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Onur Can
First-Cheque Investor at HEARTFELT_ & APX
One of the most important points in my opinion. Listening means connecting by (emotionally) validating the founder's efforts to accomplish their mission and vision. As a founder/ leader you can feel alone and insecure a lot. Especially pre momentum (pre-seed/ seed phases) can be very demanding mentally, as you usually do not have strong supporters (e.g. investors, top c-level employees, advisors etc.), but face lots of rejections and critical voices. It's helpful to have genuine, authentic and competent believers within the team.
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Dr. RASHID ALAMERI
Founder & Chairman @ Group of Companies | PhD, International Relations l MENTOR I Author of Upcoming Book !
Pay close attention to their verbal and nonverbal cues during conversations. Ask open-ended questions and actively listen to their responses to understand their perspective. Show respect: Respect their authority and decisions, even if you disagree. Voice your concerns constructively and offer alternative solutions without undermining their leadership. Be adaptable: Be prepared to adjust your approach based on their feedback and preferred communication style. Flexibility and adaptability demonstrate your willingness to collaborate effectively.
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Catherine Williams
Corporate lawyer at Keystone Law
Listen, listen and listen again. Lawyers are notoriously poor listeners, always eager to provide solutions and evidence knowledge and expertise. Creative proposals take time to evolve and can only be realised within a two way relationship between lawyer and Founders. Don't plough in too early with opinions and jargon. Wait and listen then follow up with a clarificatory e mail or Teams call to summarise what you think you heard. You may have misinterpreted something. Take time to scope out a project with the Founder and keep listening throughout.
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Benjamin Shaw
Investment Professional, Founder, Fellow, Author, Host
Engage with their vision. Understand what motivates them and their incentives to succeed. Identifying their areas of passion often informs the style of leadership.
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Rade Rakočević, PhD
Owner & CEO at Senzal capital, Wealth Management Consultant
As a both founder and wealth manager who works with many founders, I can say that this is so important skills. Knowing the real need or pain that need a solution of one specific founder is hard to find out just by his/her words. There are always some family and trust issues, hard questioning about your real personal life goals and what will you leave behind... It is so difficult to get someones trust, so try to be honest - that is my suggestion. Just try to understand funder's position in life and share your personal dillemas and good practices from real life with him, that will open her/him more and also learn you in return more about someones expirience and knowedge.
Another way to build trust is to share your own story with the founder. This can include your personal and professional background, your motivations, your values, and your failures. Sharing your story can help you establish common ground, show vulnerability, and convey authenticity. It can also help you highlight your strengths, your expertise, and your track record. Sharing your story can make you more relatable, more credible, and more trustworthy.
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Daniel Wild
I have found that sharing my own experiences as a founder, especially the tough experiences, the setbacks and the resources I used to survive these situations was the fastest way to build a close rapport with founders I meet for the first time. As a founder turned VC I have learned humility and have a lot of respect for any founder starting out on his or her entrepreneurial journey.
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Dr. RASHID ALAMERI
Founder & Chairman @ Group of Companies | PhD, International Relations l MENTOR I Author of Upcoming Book !
Briefly present your past successes and learnings, aligning them with the challenges or opportunities facing the founder. This showcases your competence without appearing presumptuous.
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Pierluigi Giraudi
Co-Chief Executive Officer at L'Orto di Jack
Different mangers with different styles all go through similar processes and moments while building a business. Being able to share and compare how situations were handled it's key to build mutual respect and a sense of common goal.
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Chris G. Pang
Sharing your own story can be a powerful way to build trust and rapport with a founder. It allows you to showcase your personal and professional experiences, values, and failures, and to demonstrate how these experiences have shaped your perspective and approach to business. For example, you might share your own journey as an entrepreneur, including the challenges you faced and the lessons you learned along the way. This can help the founder to better understand your perspective and to see that you have a personal stake in the conversation. Sharing your story can also help to create a sense of common ground and shared experiences, which can help to build a stronger relationship with the founder.
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Alberto Zummo, MBA
Accredited to United Planet branch of UN Life Science Scientific Committee
hard day to join an unfamiliar business; starting from meetings, you're not prepared at however during a career should happen to meet people you don't know the World go on again despite some difficulties. During an unexpected meeting you need to "smell the air" being careful before to open mouth. After that "trial period" you can easily understand which is the desk mood and act accordingly. Let the attendees express their opinion and you move rapidly according with. With these easy tasks you avoid the risks to say something should happen later as an idiot. These are my experiences and so fare I've never found myself in troubles.
Different founders may have different preferences for how they communicate, how they make decisions, how they handle feedback, and how they manage conflict. To build trust, you need to adapt your style to suit their needs and expectations. For example, some founders may prefer frequent and informal check-ins, while others may prefer scheduled and formal meetings. Some founders may appreciate direct and honest feedback, while others may need more support and encouragement. Some founders may welcome constructive criticism, while others may react defensively. Adapting your style can help you avoid misunderstandings, respect boundaries, and foster collaboration.
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Dr. RASHID ALAMERI
Founder & Chairman @ Group of Companies | PhD, International Relations l MENTOR I Author of Upcoming Book !
Match their communication style: Mirror their level of formality, directness, and communication frequency. If they're concise and action-oriented, avoid verbose explanations. If they value emotional intelligence, express empathy and understanding. Tailor your information delivery: Adjust the detail and depth of your reports, presentations, and updates to match their information consumption preferences. Some founders prefer data-driven summaries, while others need a holistic narrative. Offer proactive support: Anticipate their needs and offer solutions before they request them. This demonstrates your understanding of their priorities and willingness to support them.
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AMIT MΞHRA, CFA
Partner at BORDΞRLΞSS Capital
Understanding and adapting to a founder's communication and decision-making style is crucial in venture capital, as it can significantly impact the success of the investment. Building rapport with founders requires flexibility and emotional intelligence. Venture capitalists who demonstrate adaptability in their approach can better support their portfolio companies, leading to stronger relationships and potentially better outcomes for both investors and entrepreneurs.
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Chris G. Pang
Understanding the communication and decision-making preferences of the founder is critical for building trust and fostering collaboration. Different founders have different styles of communication and leadership, and it's important to adapt to these preferences to establish a strong working relationship. For example, some founders may prefer a more structured and formal approach to communication, with regular meetings and updates, while others may prefer a more informal and ad-hoc style. It's also important to be mindful of the founder's decision-making style. Some founders may prefer to make decisions quickly and autonomously, while others may prefer a more collaborative approach that involves gathering input from a variety of sources.
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Adam Fraser-Harris
Part time/Interim CFO /CEO - Ex corporate Financier - Investor - Advisor - NED/Mentor Innovate UK
It is very important to agree the pattern of communication that they prefer and work out the best structure though if I am involved with a founder they need to be open to help so if they get defensive that would concern me but I need to ensure how I communicate is on the basis that I understand their needs.
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Gordian Braun
Transformation, Growth & Marketing Leader | Independent Project Manager & Strategy Consultant | Ex Forbes Tech Council & Y Combinator | MBA, MS, LL.B.
I've seen many VCs doing their standard meeting, basically not caring about the real skills behind a person and actively wanting to be sold instead of having an honest conversation. I would always try to see the person, not the business. - Make clear that honesty is key, and not overselling - Prepare yourself to actively find out what's scaring the founder, what's not working, what sucks with the business and communicate that it is totally ok to talk openly about this
Feedback is essential for building trust, as it allows you to exchange information, express appreciation, address issues, and improve performance. However, feedback needs to be given and received in a respectful and constructive way. When you give feedback to a founder, make sure you are specific, objective, and actionable. Focus on the behavior, not the person. Provide positive and negative feedback in a balanced way. When you ask for feedback from a founder, make sure you are open, curious, and receptive. Listen to their opinions, acknowledge their suggestions, and thank them for their input.
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Hans-Peter Dohr
Be specific and objective when giving feedback. Focus on finding a solution that is acceptable to everyone or accept that there is no solution. Give feedback in a balanced way, taking into account the situation at hand. Sometimes negative feedback should not be given immediately, but the right time must be found for it. Avoid using jargon or technical terms that the founder may not be familiar with. If you are an investor and the founder is the scientific or creative mind, respect their creative process and avoid being overly critical, let alone dismissive, of their ideas. Remember that feedback (positive or negative) is an opportunity for a two-way dialogue to work towards a common goal.
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Chris G. Pang
Feedback is a two-way street, and both giving and receiving feedback in a respectful and constructive manner is essential for building trust and improving performance. When giving feedback, it's important to focus on the behavior or actions rather than the person, and to provide specific examples and actionable suggestions. This helps to make the feedback more objective and less personal, which can help the founder to better understand and accept the feedback. Providing both positive and negative feedback in a balanced manner can also help to maintain a positive and constructive tone. When asking for feedback, it's important to be open and receptive to the founder's perspective, and to thank them for their input and suggestions.
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Igor Shifrin
CEO & Co-Founder at Foresight Works
Important to share not only your own feedback but also feedback you are hearing from the wider investment team in internal discussions.
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Onur Can
First-Cheque Investor at HEARTFELT_ & APX
Feedbacking is a great tool and an ideal moment to build genuine and trustworthy connections. Use this opportunity to show that you truly care. Ideally think in solutions and especially when your trust levels are still emerging and not super high, try to focus on validating and amplifying what works well. Startup founders are facing immense pressure to succeed (often times anxiety to fail), thus need emotional companions on their path to success. In my experience feedback works best if you have made clear that you a.) are perceived as being competent (ideally proven by excellent execution) and b.) have demonstrated to have the best intentions for the person you are giving feedback to.
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Jerri Laine
Communication transparency is paramount; VCs should provide clear expectations and realistic assessments supported by a roadmap linked with targets. Actively engaging with founders beyond board meetings, demonstrating genuine interest in their vision, helps establish a solid relationship.
The last but not the least way to build trust is to follow through on your commitments, promises, and expectations. This means delivering on what you say you will do, meeting deadlines, providing resources, and honoring agreements. It also means being consistent, reliable, and transparent. Following through shows that you are dependable, accountable, and professional. It also shows that you respect the founder, their time, and their work.
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Dr. RASHID ALAMERI
Founder & Chairman @ Group of Companies | PhD, International Relations l MENTOR I Author of Upcoming Book !
Send a thank-you note reiterating key points discussed and confirming next steps. This shows professionalism and builds on the momentum established during your interaction.
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Dan Terner
Co-Founder and Chief Operating Officer - GrowthSpace brings the power of data to personalized learning and development
Following through matters for VCs and founders because it’s about keeping your word and showing you’re in it together. When VCs deliver on promises and stay engaged, it builds trust and strengthens the working relationship. This direct approach helps both parties navigate challenges, make informed decisions, and move the startup forward.
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Chris G. Pang
Trust is built on actions, not just words, and following through on your commitments and promises is crucial for establishing and maintaining trust with a founder. Delivering on your promises and meeting deadlines demonstrates your reliability and professionalism, and it helps to build a sense of trust and confidence in your abilities. It also shows that you respect the founder and their time, and that you value the relationship. Consistency and transparency are also important components of trust. If you make a mistake or encounter a challenge, it's essential to communicate this to the founder in a transparent and timely manner. This can help to build trust and understanding, and can prevent misunderstandings or conflicts from arising.
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P. D. Dale
President @ Bio-Organic Catalyst, Inc. Developer of water catalyst products in water, wastewater, agriculture, aquaculture, VOC/odor control, pulp/paper, solid waste, anaerobic digestion, and ecological restoration.
Show loyalty and respect for and your people. Leadership is about serving your community as well as you are able. Greet your colleagues with good cheer and encouragement for their contributions.
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Pankaj Joshi
Cost Accountant, MBA, Strategist, Analyst
Any day - the obvious trap to avoid is making unreasonable commitments under any kind of pressure or material benefits considerations.
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Sameer Karulkar
M&A | Venture Capital - Investment Management, Portfolio Growth & Exits | Strategy & Corporate Development | Private Equity & Secondaries | Venture Builder | Board Advisor
Observe. Engage. Ask Qs to help the founder better frame the challenges or support being sought. Such engagement could allow their style to emerge and accordingly your adaption of your own style of engagement. Be open to changing the style based on situations or the type of support being offered. However, remain authentic to your own core competence/relevance at all times to be able to start building the base of trust. Based on your experience in a situation you could consider offering another perspective, but encourage them to choose what is best for them and the company. ownership and accountability on both sides are good aspects to deepen the bond. And yes keep the human element alive and not only transaction for the trust to foster
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Joe Merrill
General Partner @SputnikATX
Hold them accountable. The best founders want you to objectively help them. Set OKRs and then follow up. Failure is a learning experience, so help them grow!
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AMIT MΞHRA, CFA
Partner at BORDΞRLΞSS Capital
Building trust with founders is critical in venture capital, as it underpins successful partnerships. To navigate unfamiliar leadership styles, venture capitalists should also consider the importance of cultural intelligence. Understanding a founder's background and the cultural context of their leadership can provide deeper insights. Additionally, transparency about investment processes and expectations can bridge gaps in understanding and align both parties' goals. As the VC landscape evolves, fostering genuine relationships will remain a cornerstone of successful investments.
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Jaswant Singh
Investor @ Angel Investor | Investments
Seek introductions:- Talk to mutual connections who know the founder and can provide insights into their leadership style. Ask about their communication preferences, decision-making process, and how they like to be supported.
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Paresh Sheth
CEO MNC Investment Bank, Adviser European Impact Fund & Director CASI New York The worlds largest CSR & Sustainability company*
“Actions speak louder than words.” So, It’s about spending time. As an investor am always keen to spend time with entrepreneurs especially of my investee companies. The more time I spend the better I am able to analyse their thoughts process through watching their actions. And vice Versa. That’s how u build trust on the basis of understanding each other.
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