Mastering the Investor-Founder Communications with Lessons from Gavin Myers
Here are some vital comms strategies for founders and investors that fosters trust and alignment
In a previous Substack post, “Why Keeping Investors in the Loop is Your Secret Weapon,” I wrote how regular updates from founders to investors can build trust and foster lasting relationships.
Building on this theme, today’s post takes another look into the nuances of effective communication within the VC-founder dynamic, showcasing insights from my podcast with Gavin Myers, Managing Partner at Prudence. Myers has a wealth of experience and a unique perspective on what it truly means to maintain open lines of communication and why this is critical for the success of investors and entrepreneurs.
In our podcast, Myers says that the cornerstone of any successful venture relationship is brutal honesty. He argues that clear and honest communication is not just beneficial but essential.
“You just have to be brutally honest,” he says. “The worst feeling as an investor is the sensation that I’m being sold to. I already believe in you and this company. I just need the complete, unvarnished truth.”
This transparency is not only about keeping investors informed but also about building a foundation of trust that extends beyond financial transactions. Here’s a clip from the podcast:
Myers also highlights the importance of immersion as a tool for understanding the challenges and successes a startup founder might experience. Despite the growth of virtual calls in the last five years, he believes that personal interactions, especially those that are in-depth and on-site, still provide the most invaluable insights that remote communications cannot match.
“We use every tool available,” he says. “While Zoom calls are common, there is no substitute for full immersion in person. We meet with all functional leaders, not just the head of sales, to truly understand what’s working and what isn’t directly from the teams.”
I often hear investors and founders talking about how their relationship is like a marriage, and it may even last longer than a marriage. Finally, Myers describes the investor-founder relationship as a partnership where the parties are “locked at the arms.” To me, this highlights the idea that investors are not just funders. They are partners committed to the long-term success of the founders and the company itself.
“We’re not looking for reasons to pass on an investment but for a deeper understanding of exactly where you are,” he says. “Because once we sign the documents and our investment is made, we are locked at the arms.”
All these insights from Myers emphasize the role of effective communication in building strong, successful VC-founder relationships.
For more advice and to hear our full conversation, listen to the complete episode of The Venture Variety Show. The portion on investors and founders communicating begins at about the 26-minute mark.
🎧 Here’s the full podcast episode of my interview with Gavin Myers on Substack. You can also follow The Venture Variety Show on Spotify, Apple Podcasts or YouTube.
📬 I Want to Hear from You! Do you have experiences to share on investor-founder communications? Or even GP-LP relations? Share your stories or questions in the comments below or email me directly. Your feedback helps me keep The Venture Lens as relevant as I can, so let me know what’s on your mind!