Long -term cost of risk capital arrogance

Over the years, I have encountered quite a lot of risk capitalists. Some were wonderful partners, mentors and even friends. Others, unfortunately, were arrogant and repulsive. The latter group is that I want to approach today-not to have a vilific, but to highlight why their approach is short and, finally, harmful to their own interests. This article is for both my founding colleagues and VC partners who invest in us. It is a call for mutual respect, admiration and a reminder that in today’s starting ecosystem, VCs are optional for founders who have other ways to success.

A story of two pits

I remember my first step toward a VC. I was nervous, but excited. I poured my heart into my startup and believed in it. However, VC seemed bored from the beginning. He constantly interrupted me, asked me every assumption and, in the end, told me that my idea is “cute”, but not investing. I let myself feel deflated, asking me and my vision. It took me some time to realize that his arrogance was more about him than about my start. Years later, I met another type of VC. She listened carefully, asked carefully questions and even when she stressed defects, did this in a constructive way. He admired the effort I made and was really interested in helping me succeed, whether or not he invested. This meeting left me energized and more confident in my way.

These two experiences encapsulate the range of VC behaviors that I have encountered. Although not all VCs are arrogant – many exceptional partners – there is enough to be a problem worth adding. Arrogance in risk capital is not just unpleasant; It is a short-sized strategy, which eventually harms both the founders and VCs.

Why arrogance is with short views

One of the most important aspects of risk capital is the relationship between investor and founder. It is a partnership that lasts ideally for years. When a VC approaches this relationship with the arrogance, it poisons the well from the beginning. The founders are less likely to share their concerns, ask for help or to be open to their challenges. This lack of communication can lead to misunderstandings, missed opportunities and, finally, to a failed investment. The success of a startup is often based on the ability to pivot, adapt and solve problems quickly – all these requires confidence and transparency between founders and their investors.

In addition, arrogance can harm the reputation of a VC. The founders communicate with each other. If it is known that a specific VC is difficult to collaborate, rejection or condescending, the founders will avoid them. In a world where the flow of transactions is crucial, to be labeled as an arrogant VC leads to the lack of primary opportunities. The most promising startups will look for investors who consider them as partners, rather than subordinates.

I understand – VCs see hundreds of potholes every year and that can be exhausting. It is easy to become cynical or develop thick skin. However, this is not an excuse for arrogance. In fact, you should motivate VCs to be more empathetic, recognizing how difficult it is for the founders to get there. The founders are already fighting with self -doubt, the uncertainty of the market and the immense pressure to build something from scratch. The last thing they need is an investor who puts their efforts.

The power of respect and admiration

The founders take huge risks, often sacrificing stable careers, personal time and sometimes their money to create something new. This deserves respect. When VCS approaches the founders with admiration for their entrepreneurial spirit, tiles and passion, it sets a positive tone for the relationship. It favors open dialogue, mutual trust and a common commitment to success.

Respect does not require blind agreement with everything a founder says. Constructive criticism and harsh questions are vital components of the investment process. However, there is a distinction between provoking a founder to think critically and destroy them. The best VCs understand how to encourage the founders to improve without undermining their confidence. They recognize that their role is to favor innovation, not to stifle it.

Investment in a start is not a unique transaction; It is the beginning of a relationship that might take a decade or more. Starting the relationship with arrogance is like building a house on an earthquake foundation. It could be maintained for a period, but it is more likely to collapse under stress. When things become harsh – and they will – who need partners that can rely, not opponents. A VC who has shown respect and admiration from the beginning is more likely to be a supportive partner.

VCs are optional

Here is a reality check for VC partners: You are optional. In today’s starting ecosystem, the founders have several options than ever. They can bootstrap, look for angel investors, use crydfunding or access government subsidies. Risk capital is just one way and not always the best. The founders of these understand this and they are selective with whom they work. They are looking for VCs who will be true partners, not just checking writers.

If a VC is perceived as arrogant, they will probably be excluded from the best offers. The founders are becoming more and more discerning about the type of investors they want on their table. They are looking for partners who offer more than just financial support – parties that offer networks, expertise and, in fact, respect. On a competitive market, VCs must be distinguished by the fact that they are the kind of partners with whom the founders want to collaborate.

This does not have to suggest that VCs should found the founders or avoid harsh conversations. The founders need challenges, and VCs have a duty to protect their investments. However, there is a way to achieve this while still treating the founders as equal. The most successful VCs are those who balances the high expectations with authentic support and admiration for the founder’s journey.

A call for better partnerships

For my founding colleagues: Don’t tolerate arrogance. You deserve respect for what you do. If a VC does not show it, look for opportunities elsewhere. There are a lot of investors who will appreciate your vision and effort. Choose partners who pick you up, not those who undermine you.

For the VCs there: remember that your success is related to the success of the founders you support. Treat each founder with the respect they deserve and you will discover that it pays long -term dividends. A little admiration for their entrepreneurial spirit can significantly increase a fruitful partnership.

Finally, risk capital involves more than just money – focus on people. The founders and VCs are part of the same team, striving to a common goal. Let’s treat each other accordingly.