Vertex Intersect 2024 recap: Startups should consider open communication a competitive advantage
In a time when artificial intelligence is the single biggest driver of growth in the tech sector, and truly intelligent systems seem tantalizingly within reach, it’s still the human factor that will make all the difference.
That was the takeaway from last week, when we hosted over a hundred startup founders, CEOs, investors, and technologists in Palo Alto for Vertex Intersect ’24 — our annual invite-only event for members of the Vertex Ventures US network.
The event operated under the Chatham House rule, so we can’t tell you who said what. What we can say is that attendees and presenters included Wealthfront founder and executive chairman Andy Rachleff, Hashicorp co-founder and CTO Armon Dadgar, and Yvonne Wassenaar, who sits on the board of JFrog, Arista Networks, and Rubrik, alongside a who’s who of next-generation leaders from across our portfolio.
Across a variety of roundtable workshops and keynote sessions on everything from business development and M&A to engineering leadership and go-to-market strategies, a clear theme emerged: In times of rapid change and market uncertainty, as we see today, the founders that thrive are the ones who aren’t just experts at building products, but also at building trust.
Take, for example, the fundraising process. Something we heard at Intersect was that one of the best ways to make sure the due diligence process gets off on the right foot is to be transparent with a prospective investor and give an accurate view of the business. A little hyperbole is always expected, but don’t be afraid to show what could use improvement, either. No startup is perfect, and giving the most complete view into your business, warts and all, might actually help an investor get a sense of how they can best help you.
Similarly, Intersect attendees heard from experienced practitioners that there are no shortcuts when it comes to building community around a product, particularly for those in the open source software industry. Founders should be prepared to attend user meetups, travel to conferences, and generally be present wherever the community is gathering (including, or perhaps especially, on social media). Beyond building enthusiasm around your product, founders that invest in getting to know their users will get the crucial stream of feedback that can make all the difference when it comes to better outcomes.
The industry experts in attendance at Intersect also emphasized how clear communication can make or break startups as they scale from the seed stage to Series A and beyond. Every startup goes through growing pains, as the processes and organizational structures that got them through the earliest days are insufficient to meet the needs that come with ever-larger and more complex customer deals. Those who have been through this suggested that the best way for leaders to navigate these times of great change is with an excess of communication: Make sure everyone understands why each decision is being made, even if they don’t agree with it, articulate a vision for what you’re trying to achieve, and own up to it when the process inevitably doesn’t go as smoothly as you’d like.
This approach also works when it comes time for a startup to think about their second or third products. Engineering leaders shared with Intersect attendees their playbooks for scaling up product development, and much of it once again hinges on open communication. It falls on a startup’s leadership to articulate a clear vision and mission, while also giving plenty of space for team members to contribute their own thoughts and ideas for what the future might look like. If that weren’t enough, founders must also keep engineers excited about maintaining and developing the current product which theoretically forms the core of their business, while also laying out a set of priorities and goals that take a more long-term view.
There’s no single, one-sized fits all recipe for success; every startup’s journey is different. Still, if Intersect attendees agreed on anything, it’s that very few startups can succeed without developing as much discipline and rigor around these kinds of communication as they do the product.
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