Entrepreneurs and Investors Urged to Improve Fundraising Etiquette to Boost Innovation

What's Happening?

A recent article highlights the growing concern over the erosion of etiquette in venture interactions between founders and funders. The piece, inspired by the book 'Founder vs Investor: The Honest Truth About Venture Capital from Startup to IPO,' discusses the negative impact of 'slow maybes' in fundraising. Entrepreneurs and investors are encouraged to prioritize clear communication and respect to foster long-term relationships. The article emphasizes the importance of direct responses, whether positive or negative, to avoid wasting time and damaging trust.

Why It's Important?

The breakdown in communication and etiquette during fundraising can have significant repercussions on innovation and business growth, particularly in sectors like agriculture and biotechnology where timelines are long and exits are rare. Poor etiquette can lead to lost opportunities and strained relationships, ultimately hindering the development of new ventures. By improving communication and setting clear expectations, both founders and investors can enhance trust and collaboration, leading to more successful partnerships and increased innovation.

What's Next?

The article calls for a reset in fundraising interactions, urging both sides to eliminate ghosting and commit to raising the bar in communication and respect. This involves setting clear expectations, providing timely responses, and maintaining open lines of communication even after deals are closed. By doing so, both founders and investors can build stronger, more productive relationships that support long-term success.

Beyond the Headlines

The emphasis on etiquette in fundraising highlights broader cultural and ethical considerations in business interactions. Respectful communication not only improves individual relationships but also contributes to a healthier innovation ecosystem. As trust is a key currency in sectors like agtech and biotech, maintaining high standards of etiquette can lead to more impactful and sustainable business practices.