Scaling Trust: How Founders Can Build Strong Relationships with Their Board and Investors
Trust is everything for a founder. In the early days, it’s about earning the confidence of your first employees, your customers, and maybe your co-founder. But as your company grows, the stakes get higher. Suddenly, you’re sitting across from investors and board members who have their own expectations, priorities, and pressures. The dynamics change.
I’ve been in that seat—pitching to investors, negotiating with board members, and trying to balance vision and control while keeping the company moving forward. I’ve seen firsthand how trust can make or break these relationships. And I’ve learned the hard way that trust isn’t automatic—it’s built over time, through action, transparency, and consistency.
The Founder’s Dilemma: Leading While Letting Go
When you start a company, you make all the decisions. Every dollar spent, every hire, every strategy shift—it’s all on you. But the moment you take outside capital, that changes. You now have a fiduciary responsibility to shareholders, a board that expects oversight, and a group of people who may not always see the business the same way you do.
This is where a lot of founders struggle. The same independence and control that helped them get the company off the ground can make it hard to work effectively with investors and board members.
Here’s the reality:
If you resist their input, you risk damaging trust and creating tension that slows progress.
If you bend too much, you lose the ability to lead with conviction.
The key is finding the balance—being open to guidance while standing firm on what matters most.
Trust Starts with Transparency
One of the biggest mistakes founders make is treating their board like a necessary evil rather than a strategic advantage.
In my own journey, I learned that the best board relationships are built outside the boardroom. That means:
Regular, honest updates. Investors don’t like surprises. Keep them informed, even when things aren’t going well.
Admitting what you don’t know. You don’t need to have all the answers. A good board can help fill gaps if you let them.
Clarity on expectations. Are they looking for aggressive growth? Profitability? A strategic exit? The more aligned you are on the big picture, the fewer conflicts you’ll have later.
Pisano (2019) emphasizes that great innovation cultures require discipline, not just vision. The same applies to board relationships. It’s not just about exciting ideas—it’s about execution, accountability, and making sure everyone is aligned on what success looks like.
Board Meetings: A Test of Trust
Board meetings are where a lot of founders either gain or lose trust.
Do you come prepared?
Do you own your mistakes?
Do you focus on the right things?
A good board doesn’t expect perfection, but they do expect competence and honesty. If you walk into a meeting and sugarcoat reality, they’ll see through it. If you avoid hard questions, they’ll push harder.
Early on, I thought board meetings were about proving I had everything under control. Over time, I realized they were about problem-solving together. The more I involved the board in tough decisions, the more trust we built.
Schein (1983) argues that founders shape culture through how they respond to problems—and that extends to how they handle board relationships. A founder who embraces hard conversations and takes responsibility sets a tone of maturity and leadership.
The Investor-Founder Relationship: More Than Just Capital
Investors don’t just write checks—they bet on people.
One of the best pieces of advice I ever got was: "Choose your investors like you choose your co-founders."
Money is money, but the right investors bring more than cash:
Strategic insight – They’ve seen dozens of companies scale and can help avoid pitfalls.
Connections – The right intro at the right time can change everything.
Tough love – Sometimes you need someone who will challenge your thinking.
But like any relationship, investor-founder dynamics require work and communication.
If you only reach out when you need money, you’re not building trust.
If you ignore their advice completely, you’re missing an opportunity.
If you expect them to run the company for you, you’re in trouble.
The best relationships are built on mutual respect—you respect their experience, and they respect your role as the founder.
Scaling Trust as the Company Grows
In the early days, trust is personal. You’re having direct conversations with your investors, your board, and your leadership team. But as the company scales, trust has to become institutional.
This means putting the right systems and structures in place:
Clear governance – Who makes what decisions? How do board and leadership roles evolve?
Strong leadership team – Investors trust teams, not just founders. Hiring the right executives can reinforce confidence.
Consistent communication – Whether it’s quarterly updates, investor letters, or strategy sessions, trust is maintained through regular touchpoints.
Final Thoughts: Founders Set the Tone
At Founded Partners, we work with founders who are navigating the transition from early-stage leadership to scalable, sustainable leadership. And one of the biggest shifts is learning how to build and maintain trust—not just with employees, but with investors and board members.
Founders set the tone. The way you communicate, problem-solve, and show up in board meetings shapes how your company is perceived. Investors want to bet on founders who are transparent, competent, and adaptable.
Trust isn’t about agreeing on everything—it’s about knowing where you stand and proving you can execute.
If you’re a founder working through these challenges, let’s talk.