Trust credit

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One important observation. Something that is obvious once said aloud but not so commonly discussed. So VC-backed startup usually spends the money raised from the fund to grow the business. How it is being done is another question, but that’s how it works.

There is though equally important task. You need to build the relationship and grow your credit with your VC. It is not uncommon to see the funds vanished while the objectives (whatever they are) still haven’t been met yet. In this case, you will be executing the pivot shift or continuing with your current strategy if you believe in it. Either way, most likely you will come to your VC asking for more. Whether they will be keen to support you further will heavily depend on whether you have successfully built the trust with them.

Artem Berman

Artem Berman

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