No man is an island, nor can one flourish in a silo. The Investor-Founder Relation is a perfect example of a symbiotic relationship wherein both are equal beneficiaries and stand to gain from the alliance. Like any other relationship, it is also based on trust, goodwill, honesty and transparency.
A seesaw?
It is not always the case that a founder has a questionable intent, which is to be doubted or viewed suspiciously. Also, it is not always the case that an investor brings with him business insights that matter in a particular industry.
The investor-founder relation does not have to be like a seesaw with one party always having an upper hand and the other one struggling to keep it level. Rather, it could be like a balance scale wherein both parties add value in equal measure to achieve an equilibrium. The resources, insights, mentorship of the investor combines with the vision and expertise of the founder to create a meaningful and fruitful alliance. Of course, several complex external factors can cause a friction and disturb this equilibrium, which is where one needs to re-calibrate the scale.
‘Kal se Kal Tak’
With the year gone by (financial year) — ‘kal’ — it is good to reflect and learn our lessons. What went wrong that we should not repeat and what did we do right, that we could replicate. In both the scenarios, it is important to retrace our steps and identify the reason. If we were wrong, was that a one-off anomaly or a misdirected step? If we were right, then was it by fluke or a positive outcome of a well-thought out strategy?
Of course, while we cannot always dwell in the past, it is equally true that we cannot always rest on our laurels. We need to acknowledge the wisdom from the past and prepare for the future.
Which is why, equally important are the upcoming years — ‘kal’. It is good to know our history, but of what use it is, if we learn nothing from it and continue the same pattern. Even better though is to learn without making our own mistakes. It is pertinent to anticipate and be proactive if we want to nip issues in the bud. One way to achieve this is by open and transparent communication between the two parties, i.e., rather than being prodded to share, founders could be forthcoming in sharing pertinent matters, without any delay.
In one such case, a portfolio company decided to resolve a complex issue that came up, not with an intent to hide, but to resolve the matter on its own, genuinely believing that it had the requisite resources to deal with it. Soon enough, the matter spiraled out of control and became more complex, the matter then was highlighted to Auxano. Recognizing the seriousness of the issue, Auxano considered it more appropriate to seek expert opinion, therefore identified, and steered the Company towards the right professional in the ecosystem to handle the issue at hand. This again underscored the importance of not only to have an open communication but also timely action. Another thing it highlighted was to know one’s own core expertise and limitations and leave the rest to the best specialists in the industry.
A Long-term relationship…
An Investor-Founder relationship is not like a single transaction, akin to purchasing something off the rack. At Auxano, we believe that it is a long-term relationship, which is built over a period of time that thrives on mutual trust and collaboration, support and aligned vision to work towards a common goal of building strong foundations of a successful business. It is at best, two sides of the same coin, not in the sense of looking in the opposite direction, but that of co-existing together and complementing each other to achieve a common objective.
Author:
Mansi Handa
