Building Trust In Investments

When I raised funds for my startup, the biggest advise I was given was to choose funds that are "founder-first". I think the true gravitas of this term sunk in when I became a VC myself. Imagine interacting with someone you barely know, for just 3 months, and then signing up to spend the next 10+ years of your life together, along with 50+ page documents which list out legal, financial (and emotional) consequences. No wonder it's the most important decision for a founder. In an ideal journey, a founder and investor’s interests are truly converged. But there may come a time when what is perceived to be best for the company and its stakeholders is different from what is in the interest of the founder. The challenge is that a VC sits at the precipice of managing external capital and supporting a founder, which means sometimes, despite the best of intentions, not being able to compromise on critical pillars of capital protection. So how do you start building the foundation of trust: 𝙵̲𝚘̲𝚛̲ ̲𝙵̲𝚘̲𝚞̲𝚗̲𝚍̲𝚎̲𝚛̲𝚜̲: 𝗦𝘁𝗮𝗿𝘁 𝗲𝗮𝗿𝗹𝘆 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻𝘀: If you're planning to raise money in the coming few months, start having agenda-less conversations with your target investors and then keep them updated on your journey. Every interaction matters towards building trust. 𝗗𝗼 𝘆𝗼𝘂𝗿 𝗿𝗲𝘀𝗲𝗮𝗿𝗰𝗵: Speak to other founders, do your own due diligence and ask questions like - how has the investor behaved during times of distress, exits; how does the investor take feedback 𝙵̲𝚘̲𝚛̲ ̲𝙸̲𝚗̲𝚟̲𝚎̲𝚜̲𝚝̲𝚘̲𝚛̲𝚜̲: 𝗚𝗲𝘁 “𝗯𝗲𝗵𝗶𝗻𝗱” (𝗻𝗼𝘁 𝗶𝗻 𝗳𝗿𝗼𝗻𝘁 𝗼𝗳) 𝘁𝗵𝗲 𝗳𝗼𝘂𝗻𝗱𝗲𝗿’𝘀 𝗱𝗿𝗲𝗮𝗺: Know that you are very much walking behind a founder, not in front. So know when to step in and be at their side, and when to get out of their way (much like a healthy marriage!) 𝗦𝘁𝗮𝘆 𝗲𝗺𝗽𝗮𝘁𝗵𝗲𝘁𝗶𝗰 𝗮𝗹𝘄𝗮𝘆𝘀: The key word here is "always". This requires relinquishing control, showing up to meetings with an open mind, remaining positive. Build this philosophy (to the extent possible) in founder employment agreements that ensure the founder is comfortable and not financially under distress - this includes being sensitive about founder salary needs, vesting, and buyback. 𝗕𝗲 𝗮 𝘀𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝗯𝗼𝗮𝗿𝗱: Show the mirror, be a thought partner. Align with the founder on the long term strategy (and let them lead it), but also look out for short term distractions or fake signals that could be perilous. The founder’s journey is no doubt harder than an investor's. But ultimately, if there is one thing I have learnt in my VC journey is that this is a gut-driven business. Most times, both parties intuitively like each other and the vibe simply checks out. The kind of founder that one VC likes will be different from others, and that’s okay. Ultimately, in the investor-founder marriage, choose your spouse wisely and trust that one can help achieve the other’s dreams.

When I speak to buyers of carbon credits, here’s what’s in greatest demand: #trust They are crying out for it. Given previous scandals, they’re very aware how easily they could be caught holding poor-quality credits. We as a sector have let them down. But I believe the #FirstPrinciple answer is simple - albeit an oxymoron - to trust carbon credits, build systems that don’t rely on trusting us. Generally, carbon project developers are great people trying to do amazing things. By and large, we are not bad actors. But we shouldn’t be trusted. We have an inherent conflict of interest in the returns of the project to our investors, teams and partners that weighs us down constantly. It's not easy carrying this weight - the temptation to believe what we want to hear or turn a blind eye is strong. But a trustless goal isn’t aspirational - it’s already happening and why carbon is now clearly a #Kshaped market. Those performing well, like ATEC Global, have robust & independent baseline science combined with project technology such as 100% IoT that means you don’t need to trust us in order to trust our carbon credits. But if as a sector we keep the bar low, allowing developer-controlled assumptions, sampling and conflicts of interest, we will set ourselves up for another market cycle crisis. So let’s build a complete sector that doesn’t rely on trusting us. Then our buyers will finally be able to trust our carbon credits - and an exciting future awaits.

What happens between founder–investor meetings often matters more than what happens in the meetings themselves. If an investor asks to check back in a few weeks, the real test isn’t the next Zoom call, it’s what the founder gets done between those calls. Early-stage investors are looking for one trait above all: speed of execution. In a recent conversation with a VC friend, someone asked what his best founders all shared. His answer came instantly: speed. He shared a story about a founder who ran 50+ experiments in rapid succession. The breakthrough didn’t come until experiment 52, but the sheer speed meant he reached product-market fit before the cash or the energy ran out. That’s the reality: founders who test, learn, and iterate quickly dramatically increase their odds of breaking through. So if you’ve got 2–3 weeks between investor meetings, use that window to prove you can execute. It doesn’t matter if the experiment succeeded or failed. What matters is showing up to the next call saying: “We did X, Y, Z, and here’s what we learned.” Investors aren’t won over by glossy slides, rosy projections, or a massive TAM. They’re won over by watching you execute like an animal, moving fast, running experiments, learning, and proving you can make progress when it counts. #founder #entrepreneur #startup #venturecapital #vc #ycombinator

💰 In Venture, Trust Is the Ultimate Currency Last night, I had a candid conversation with an early-stage investment manager. We started with the usual — market trends, valuations, and deals in the pipeline — but soon, the conversation shifted to something far more fundamental: Trust. In the world of pre-seed and seed investing, trust is everything. Investors aren’t just evaluating your business; they’re evaluating *you* — your character, your honesty, and your ability to follow through. These traits often weigh far more heavily than your latest metrics or pitch deck polish. Here’s what stood out from that conversation: 👥 Investors Invest in People, Not Just Businesses. Investors choose founders they believe in. They bet on people, not just ideas. Without trust, even the most compelling pitch will fall flat. ❓ Don’t Know the Answer? Say So. When faced with a tough question, resist the urge to bluff. A simple: *“I don’t have that answer right now, but I’ll follow up in 48 hrs builds credibility. Guessing or improvising can potentially destroy it. 🚫 Don’t Fake Investor Interest. You’ll be asked, Who else have you spoken to? Never claim that other investors are interested unless it’s true. Venture is a small world where investors frequently co-invest and share intel. Misleading one can shut doors with others. 🔍 Be Transparent, Open-Minded, and Honest. No one expects perfection — but everyone expects integrity. Be upfront about risks, challenges, and areas where you need help. Transparency signals maturity and commitment to building something real. 🎯 The Bottom Line: Trust is hard to build but easy to lose. Once broken, it’s almost impossible to rebuild — and without it, raising capital becomes nearly impossible. In a world driven by ambition and bold visions, trust is the one currency that can’t be fabricated. Build it intentionally. Protect it fiercely. #VentureCapital #StartupLife #TrustInBusiness #EarlyStageFunding #FounderLessons #IntegrityMatters #StartupsAndVC #EntrepreneurMindset

Recently, I walked into a client's manufacturing facility facing a familiar scene: tension between their desire for certainty and the inherent uncertainty of innovation. "What will we get? When will we see it? How can we be sure?" The questions came quickly. They'd been scarred by traditional software approaches. Big design up front, scope creep, missed expectations. They needed an AI solution but couldn't share data externally due to strict security requirements. The challenge was clear: deliver value quickly while building trust. Day 1 focused on understanding their domain. I sketched lean manufacturing processes, examined their data, and explored possibilities. All while being transparent that I didn't have all the answers yet. By morning of Day 2, I had a plan. "Based on what I've seen, I believe we can deliver something valuable today." Their expressions showed cautious optimism, but doubt lingered. Throughout that second day, I invited them in whenever they passed. "Look at this. What do you think about that?" Each small demonstration built confidence. Each question refined our direction. Sixty seconds before our end of day meeting, the solution worked. In just 48 hours, we went from uncertainty to impact. This is how AI projects should work: rapid iteration, continual demonstration, and building while discovering. Don't let not knowing what or how get in the way. Start small, figure it out. This is how the best companies are integrating digital intelligence. #AdvantageThroughAI

One of my clients gets 1-2 investor inbounds every month. Not from cold emails. Not from pitch decks. From LinkedIn posts. Most Series A founders pitch investors 1:1 and wait for 199 'nos' before they get a 'yes'. But there's a faster way. Educate investors at scale through content so when you do reach out, they already know who you are, what you're building, and why it matters. I've written 550+ LinkedIn posts for climate founders raising capital. The ones that generate investor attention aren't the "vulnerable" Crying CEO posts. They're story-driven posts weaved with actionable insights, proof of progress, and direct answers to questions investors are already asking. Here's how to do it: 1/ Don't just celebrate milestone. Show traction. Don't post: "So excited to announce we hit 10,000 users! 🎉" Post: • The specific problem those 10,000 users were trying to solve • How fast you got there (6 months vs. 2 years matters) • What you learned that changed your product roadmap Investors care about your ability to learn fast and iterate. Show them you're paying attention to the right signals. 2/ Take a public stance on where your industry is heading. Most founders play it safe. They share news and add a generic "exciting times ahead" take. That's not thought leadership. That's commentary. Instead, show how you think about your market. What's everyone getting wrong? Where will regulation force the next wave of innovation? Pick one POV per post, explain your reasoning, and back it with data or first-hand experience. Investors follow founders who see around corners. 3/ Spotlight your team in a way that shows why they're invaluable. Don't post: "Thrilled to welcome Sarah to the team! She's amazing." Do post: • Why you hired Sarah now (what gap did she fill?) • The specific problem she'll solve in the next 90 days • What her track record signals (ex-Tesla, scaled X from 0 to $10M) When you spotlight a hire, you're saying: "Look at the caliber of people betting on us." 4/ Share takeaways from the rooms you're in without name-dropping. Meeting takeaways show you're having the right conversations with customers, partners, advisors, and other founders. Format: "Had a conversation this week with a [CFO at a Fortune 500] about [their biggest procurement challenge]. Here's what I learned..." Then share 2-3 takeaways that show you're absorbing information investors care about. — One of my clients? Their posts reach ~1,200 VCs per month. Another gets 1-2 investor DMs and connection requests monthly without cold outreach. They're not posting about struggles or origin stories. They're posting proof they understand their market, execute fast, and think like Series B-worthy founders. That's what gets you in the room. — What story angles tend to work best for you with investors?

Most founders don't have a fundraising problem. They have an investor-relations problem. After reviewing 200+ pitches this year, I see the same four patterns killing deals before they start: 🚩 One email and done. You fire off a cold LinkedIn message, get silence, and assume "they're not interested." Reality check: I get 50+ messages a week. Sometimes your timing just sucks. Sometimes I'm traveling. Sometimes I'm deep in due diligence on another deal. If you give up that fast with investors, what does that say about how you'll sell to enterprise customers who take 6 months to decide? 🚩 Taking "no" as a verdict, not data. You'll likely get 99 no's for every yes. That's the math. The question is: Did you improve your story, numbers, and deck after each no? Or did you just feel insulted and move on? Every pass I give includes a reason. "Too early." "Market's too crowded." "Unit economics don't work yet." Those aren't insults. They're facts to examine. The founders who succeed treat every rejection like user feedback. They iterate. They come back stronger. The ones who fail treat rejection like judgment. 🚩 Disappearing after the pass. "I like you, but not yet" is not a brush-off. It's an opening. Last month, I reopened conversations with a founder I passed on twice. Why? Because she sent me quarterly updates for 18 months. Short emails. Three bullets. Key metrics. By the third update, her ARR had tripled. Her churn dropped 40%. Her story got sharper. Most founders vanish after hearing "no." They treat investors like failed ATMs instead of future allies. The smart ones stay visible. Send progress updates. Ask specific questions. Build trust before they need the check. 🚩 Trying to raise without a network. You ignore pitch events, warm intros, and LinkedIn until you "need money." Then you panic and spray cold emails everywhere. Your real goal: Build enough relationships that most intros are warm, not cold. The last five checks I wrote came from warm intros in my network.   Relationships compound. Start building them before you need them. Early-stage investing is relationships, trust, and gut-feel layered on top of the numbers. Your deck might be perfect. Your metrics might be solid. But if you can't manage basic investor relations, you're telling me something about how you'll handle everything else. Customer relationships. Team dynamics. Board management. It's all the same skill: staying engaged when things don't go your way. The founders who win understand this: Fundraising isn't a transaction. It's a relationship game played over years, not weeks. The best time to build investor relationships? When you don't need the money. The second best time? Right now. Which of these four habits do you need to fix first? Come for the posts, stay for the comments.

Did you know that weak measurement and verification systems can undermine the credibility of entire sustainability and climate programs? Recent analysis by Senken of more than 2,300 carbon projects found that in some categories, fewer than 16% of issued carbon credits corresponded to real emission reductions, highlighting the risks of inadequate monitoring and verification systems. At the same time, global climate finance and carbon markets depend on rigorous Measurement, Reporting, and Verification (MRV) processes; because one verified carbon credit represents one tonne of greenhouse gas emissions reduced or removed, a unit that governments, investors, and institutions rely on to track real progress. These numbers reinforce a simple but critical lesson: credibility in sustainability is built on systems, not promises. In practice, this means investing in robust monitoring frameworks, conducting independent compliance audits, and ensuring that data can withstand scrutiny from regulators, financiers, and stakeholders. Organizations that prioritize these systems are not only better prepared for evolving disclosure requirements, they are also better positioned to attract investment, manage risk, and deliver measurable impact. As sustainability expectations continue to rise globally, the institutions that will lead are those that understand that accountability is not an administrative requirement; it is a strategic asset. Because in sustainability and climate action, what gets measured, verified, and audited is what ultimately builds trust and delivers lasting results.

Last week, I was talking to an investor about an entrepreneur he really enjoyed working with. Hearing the joy in his voice, I inquired about what made the experience so delightful. He said it was the quality of the entrepreneur’s interactions. Here are a few examples of quality interactions between an entrepreneur and an investor: 1. Timeliness of Response Whether it’s a phone call, email, or text, responsiveness matters. Of course, there’s always a lot going on, but some people manage their responsiveness better. Even if they don’t have time for a full conversation, a quick message like, “I’m tied up for the next few hours (or the day), but here are some good times to catch up,” or “I’ll get back to you by [specific time],” goes a long way. Quick, clear communication builds trust. 2. Thoughtfulness on Unknown Questions Investors frequently ask entrepreneurs questions they might not immediately know the answers. It’s normal not to have all the answers. However, some entrepreneurs try to answer everything, even when it’s clear they don’t know. It’s much better and more thoughtful to respond with something like, “Great question. I don’t know the answer to that, but I’ll research it and get back to you.” Acknowledging what you don’t know and committing to follow up shows maturity and professionalism. 3. Enthusiasm and Passion While entrepreneurs are generally optimistic—sometimes to a fault—those who demonstrate genuine passion and excitement are more enjoyable to interact with. That said, entrepreneurs shouldn’t fake enthusiasm, but ramping up energy and excitement within a natural spectrum of authenticity can make a big difference. 4. Effort in Materials Investors often request board decks, data room access, financial models, etc. Everything an entrepreneur sends to an investor reflects their leadership, even if they didn’t create the document themselves. Typos, grammar mistakes, or low-quality work can reflect poorly on the business. With today’s AI tools, it’s easier than ever to ensure high-quality output. Taking the time to deliver polished, accurate materials builds credibility. 5. Rhythm of Communication Investors value reliability and consistency in communication. Regular updates, such as a weekly email or monthly snapshot, can keep investors informed and confident in the business’s progress. Unfortunately, most entrepreneurs don’t take this proactive approach, leaving investors to request updates. Entrepreneurs who develop a consistent communication rhythm—showing transparency and reliability—provide peace of mind and demonstrate that these habits will continue as the business grows. Recognizing the importance of timeliness, thoughtfulness, enthusiasm, effort, and consistent communication can significantly strengthen these relationships. Entrepreneurs would do well to evaluate their current level of interaction and look for opportunities to enhance or improve it.

THE RESULTS ARE IN! Over the past month, as promised, I’ve been conducting a series of interviews with former real estate investment officers from CALPERS, Allstate, Florida State investment Board, CALSTRS, LACERA, Morgan Stanley (outsourced investor account), JPMorgan (outsourced investor account), the State of Connecticut Trust Funds, Utah Retirement System, Alberta Investment Management Corp., Colorado PERA as well as former senior consultants from The Townsend Group, Mercer, Institutional Property Consultants and Pension Realty Advisers (the latter two were the dominant pension real estate consulting firms during the 1980s and early 1990s, prior to the ascendency of The Townsend Group).  The interviews focused on on best and worst practices amongst capital fund raisers, including conducting face-to-face meetings, the development and use of pitchbooks, formal and informal presentations, client servicing, offering documents, and reporting practices. The results of these interviews have been compiled into a PowerPoint presentation and report, which is being delivered shortly to the 100+ sponsors of our publications around the globe. Following is a brief summary of the findings in that report: What Sets Top Investment Managers Apart Authenticity & Emotional Intelligence: The most effective fundraisers are genuine, empathetic, patient, and focused on building relationships—not just transactions. Consistency and sincerity build trust. Tailored Communication: Presentations that are concise, audience-aware, and aligned with investor needs stand out. Avoid rigid scripts; make it a dialogue, not a monologue. Governance & Transparency: Full disclosure, accountability, and a true fiduciary culture are non-negotiable for building trust. Strategic Fit & Leadership: Investors prioritize managers who align with portfolio goals, demonstrate leadership clarity, and have deep, stable teams. Clear, Honest Reporting: Visual, benchmarked, and context-rich reporting is preferred. Overloaded or misleading materials are major turnoffs. What to Avoid: High-Pressure Sales & Lack of Follow-Up: Aggressive tactics, poor knowledge, and neglecting post-meeting engagement erode confidence. Disregard for Junior Staff & Investor Feedback: Respect for all team members and responsiveness to feedback are essential. Opaque Governance & Hidden Fees: Transparency in fees, governance, and reporting is critical. Anything less is a red flag. The Bottom Line: Success in investment management is and always has been built on trust, transparency, and authentic relationships. The best managers listen, adapt, and put client interests first—every time. We will be making a copy of the report we’re going to be presenting to our sponsors available to interested parties in about a month. Please email me if you’d like to be included in the distribution of these reports at g.dohrmann@Irei.com InvestmentManagement #BestPractices #InstitutionalRealEstate #Leadership #Transparency #ClientFocus