What's Happening?
A guest article highlights the importance of etiquette in venture interactions between founders and funders, particularly in the agtech and biotechnology sectors. The authors, Matt Crisp and Mark S. Brooks, emphasize the need for clear communication and respect in fundraising processes. They argue that the 'slow maybe'—a vague response or silence after initial interest—can be corrosive, wasting time and damaging trust. The article calls for a reset in the baseline of interactions, advocating for direct responses and transparency in expectations. It stresses that both sides should maintain warm relationships and avoid burning bridges, as mandates and markets can shift over time.
Why It's Important?
In sectors like agtech and biotechnology, where exits are rare and timelines are long, maintaining strong relationships between founders and funders is crucial. Poor etiquette can hinder innovation and reduce returns, as founders spend time chasing uncertain responses instead of building their ventures. Clear communication and respect can enhance collaboration, leading to more successful partnerships and breakthroughs. This article serves as a reminder of the long-term nature of these relationships and the importance of mutual respect in achieving shared goals.
What's Next?
The article suggests that both founders and funders should commit to raising the bar in their interactions, ensuring clarity and responsiveness. This could lead to more efficient fundraising processes and stronger partnerships. As the agtech and biotechnology sectors continue to evolve, maintaining open lines of communication and respect will be essential for navigating changes and seizing new opportunities.
Beyond the Headlines
The discussion on etiquette in venture interactions highlights broader cultural and ethical considerations in business relationships. It raises questions about the role of transparency and honesty in building trust and fostering innovation. The article also suggests that improving communication standards could have long-term benefits for the entire innovation ecosystem, potentially leading to more impactful and sustainable ventures.
