Trust is hard-earned and easily lost

Fellow Founders: let’s talk about trust for a sec. A recent interaction b/w a founder and an investor came to my attention…things went sideways in a way that i havent really seen before.

In this particular case study, a founder–we’ll call “Bob”–eager for investment, presented shifting fundraising goals and company performance metrics to the investor–we’ll call “Alice”–over a number of weeks.

The shifting info and inconsistency raised red flags for Alice, and she walked away. But it wasn’t that Alice reflected on an understandable pivot or change in strategic direction that didn’t map to her initial thesis.

No. Alice walked away because she didn’t trust Bob anymore. She took major issue w/ the level of transparency, honesty, and trustworthiness (as she should!), and she said thanks but no thanks. Needless to say, this is not good for Bob or Bob’s startup.

Trust, as they say, “is hard-earned and easily lost.” Being inconsistent w/ information to investors is bad business; don’t do it. Changing the fundamentals that drive an investor decision in a way that doesn’t add up can and will severely damage your credibility and cause your startup harm. There are far too many skeptics of change in the first place. Dont stack more reasons on top of the already monster list of reasons to say no to you and your biz

Finally. A reputation for good character and being of your word attracts good people…the kind of people you want to work w/ not just today but perhaps for many years over your career. It is a very good investment in oneself…if you ask me…a policy you want to just subscribe to fully