How can VCs create a collaborative and community-driven culture?

As a venture capitalist, you know that investing in startups is more than just writing checks. It's also about building relationships, supporting founders, and fostering a culture of collaboration and community among your portfolio companies. But how can you create such a culture, especially when you have multiple funds, sectors, and geographies to manage? Here are some tips to help you cultivate a collaborative and community-driven culture among your VC firm and your portfolio companies.

1 Define your values and vision

The first step to creating a collaborative and community-driven culture is to define your values and vision as a VC firm. What are your core principles, goals, and expectations for yourself and your portfolio companies? How do you want to be perceived and remembered by the startup ecosystem? How do you measure your impact and success? By articulating your values and vision, you can communicate them clearly and consistently to your portfolio companies, and align them with their own missions and values.

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SVET Svitlo

Angel Investor , (20+ years), Serial Entrepreneur (14+ companies with > $100M cap), Author (> 1M views), Lived in 40+ countries, the Founder of Evernomics, Crypto Influencer (since 2014),
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The key is to promote openness, inclusion and helpfulness at all levels of the firm. Foster connections through team building events, open office designs, all-hands meetings and online communities. Recognize those who collaborate and lift others up. Encourage knowledge sharing via mentoring programs, workshops and open discussions about deals. Set the tone at the top by modeling transparent feedback and asking for input. Celebrate collective wins, not individual achievements. Create channels for portfolio companies to connect with and assist each other. Support extracurricular groups around shared interests or demographic affiliations. Seek direct input through surveys, 1-on-1s and participative decision making.

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Derin Altan

Entrepreneur | Impact Investor | Communicator | Attorney | Focus: Sustainability and Climate Action
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Defining values and vision is essential for any VC firm aiming to foster a collaborative and community-driven culture. Articulating core principles, goals, and expectations is not just about establishing an identity in the startup ecosystem; it's about ensuring alignment with the missions and values of portfolio companies. This alignment fosters a harmonious environment where firms and their investments thrive collectively, measured in terms of both financial success and lasting impact. It's a strategy for building a network where shared wisdom and resources benefit every member.

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Anuraag Guptaa

Board Member | Mentor-Investor | President & CEO | Listed Unicorn, Pre-IPO Soonicorns | Harvard Business School | MBA-NYU Stern, LSE, HEC | Author Igniting Minds with a Million Views
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Fostering a collaborative and community-driven culture hinges on nurturing networking and relationships, establishing mentorship and peer learning programs, engaging in co-investment strategies for shared knowledge, maintaining transparency and open communication for experience sharing, supporting portfolio companies through joint initiatives, participating in community and social responsibility projects, leveraging technology and social media for continuous interaction, promoting diversity and inclusion for varied perspectives, encouraging innovation and openness to new ideas, and focusing on long-term relationships over short-term transactions, all of which collectively build a cohesive, supportive, and dynamic VC community.

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2 Create platforms and channels for communication

The second step to creating a collaborative and community-driven culture is to create platforms and channels for communication among your portfolio companies and your VC firm. This can include newsletters, blogs, podcasts, webinars, events, forums, Slack groups, and social media. The purpose of these platforms and channels is to share insights, updates, feedback, challenges, opportunities, and best practices among your portfolio companies and your VC firm. By facilitating regular and transparent communication, you can create a sense of trust, engagement, and belonging among your portfolio companies and your VC firm.

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Mark Yde

Cornell Systems Engineering | Disability & Neuroscience Investor
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How do you toe the line between selectivity and inclusion in curating 2-way communication channels (Slack, Discord, etc.) I've seen a lot of these groups devolve into pitch spamming and cheap deal marketing unless there are stringent referral criteria or active monitoring (which can be onerous).

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Derin Altan

Entrepreneur | Impact Investor | Communicator | Attorney | Focus: Sustainability and Climate Action
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Online channels such as Slack and/or video conferences were quite popular, and handy, during the COVID-19 period. However, once the mandatory element of online gatherings vanished, we see it getting more and more difficult to capture the attention of folks at online meetings or online platforms (such as Slack). Therefore, physical elements must be spread around the communication channels to supplement any online communities.

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3 Foster peer-to-peer learning and mentoring

The third step to creating a collaborative and community-driven culture is to foster peer-to-peer learning and mentoring among your portfolio companies. This can include setting up mastermind groups, mentorship programs, workshops, hackathons, and pitch sessions. The purpose of these activities is to enable your portfolio companies to learn from each other, exchange ideas, solve problems, and support each other's growth and development. By fostering peer-to-peer learning and mentoring, you can create a culture of mutual respect, collaboration, and innovation among your portfolio companies.

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4 Celebrate successes and failures

The fourth step to creating a collaborative and community-driven culture is to celebrate successes and failures among your portfolio companies and your VC firm. This can include sending congratulatory messages, highlighting achievements, sharing testimonials, giving awards, hosting parties, and acknowledging mistakes. The purpose of these actions is to recognize and appreciate the efforts, results, and learnings of your portfolio companies and your VC firm. By celebrating successes and failures, you can create a culture of gratitude, recognition, and resilience among your portfolio companies and your VC firm.

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5 Encourage social impact and responsibility

The fifth step to creating a collaborative and community-driven culture is to encourage social impact and responsibility among your portfolio companies and your VC firm. This can include supporting causes, initiatives, organizations, and movements that align with your values and vision, and that address the needs and challenges of the society and the environment. The purpose of these initiatives is to demonstrate your commitment and contribution to the greater good, and to inspire your portfolio companies and your VC firm to do the same. By encouraging social impact and responsibility, you can create a culture of purpose, passion, and positive change among your portfolio companies and your VC firm.

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6 Solicit feedback and suggestions

The sixth and final step to creating a collaborative and community-driven culture is to solicit feedback and suggestions from your portfolio companies and your VC firm. This can include conducting surveys, interviews, focus groups, and reviews. The purpose of these methods is to collect and analyze the opinions, experiences, and recommendations of your portfolio companies and your VC firm, and to use them to improve your performance, processes, and practices. By soliciting feedback and suggestions, you can create a culture of continuous improvement, accountability, and excellence among your portfolio companies and your VC firm.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Alexander Rozenfeld

Managing Director and Founder at Climate Impact Capital, LLC
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In my experience, a typical VC portfolio is not designed for collaboration. As it is financially driven, the goal is to have sufficient diversity that covers alpha, beta, and sector risks. A new model is needed. Climate Impact Capital has been piloting a hybrid Venture Capital portfolio approach that is based on deep collaboration between each company in the portfolio, and between the companies and the limited partners. Companies support and benefit from each other’s product launches as part of an integrated, technical and commercial model at the portfolio level. We believe that this is the best approach for solving wicked problems, like climate change, and the energy transition. Anyone doing something similar?

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Dr. Ramasubramanian.G

Principal Consultant | Corporate Governance l Due Diligence -India & SE Asia l Assistance in Fund Raising l Start up expert l Mentor, Guide l Compliance Management l Strategic Management Consultant
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Be more entrepreneur friendly...even when you say no. In my knowledge many VC do not even acknowledge. They may have finance, but that doesn't hamper them from being entrepreneur friendly

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James N.

Principal: New Hill, Chairman: Arkios, Director: Broomx.
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The advice in the article is wishy washy- the whole team whether working together or individually needs to:- 1. Have clear objectives 2. Have clear comprehension of how the objectives can be attained/maintained 3. Have clear understanding of the constraints affecting achievement of the objectives and how such constraints can be avoided mitigated or overcome 4. Have clear and fair metrics by which achievement is measured 5. Love rising to a challenge and beating it 6. Get on well together, trust each other, and enjoy what they do

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How can VCs create a collaborative and community-driven culture?

1

2

3

4

5

6

7

1 Define your values and vision

2 Create platforms and channels for communication

3 Foster peer-to-peer learning and mentoring

4 Celebrate successes and failures

5 Encourage social impact and responsibility

6 Solicit feedback and suggestions

7 Here’s what else to consider

Venture Capital

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How can VCs create a collaborative and community-driven culture?

1

2

3

4

5

6

7

1 Define your values and vision

2 Create platforms and channels for communication

3 Foster peer-to-peer learning and mentoring

4 Celebrate successes and failures

5 Encourage social impact and responsibility

6 Solicit feedback and suggestions

7 Here’s what else to consider

Venture Capital

Rate this article

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