Invest Like The Best
Episode 353 Founder vs Investor
Invest Like The Best

Episode 353: Founder vs Investor

Invest Like The Best

Episode 353

Founder vs Investor

Elizabeth Zalman and Jerry Neuman are the authors of Founder vs Investor. We cover the strong reaction the book received from the VC community, why the inherent friction around incentives isn't always a bad thing, and how storytelling helps people align around a common goal.

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(00:04:02) - (first question) - The controversy surrounding Founder vs Investor: The Honest Truth About Venture Capital from Startup to IPO 

(00:07:53) - Considering the idea of firing founders

(00:10:44) - Navigating morally grey areas for founders and investors

(00:11:57) - Understanding the role of the board and their power

(00:15:05) - A PSA for founders

(00:17:48) - Identifying where incentives are most broken

(00:22:28) - Viewing founder friendliness as a temporary status

(00:25:41) - Offering good advice during the fundraising process

(00:32:41) - Ensuring delivery on promises as an investor

(00:37:04) - Strategies for a long-term relationship between a founder and investor

(00:41:44) - Structuring the ideal board meeting tactically

(00:48:13) - Determining which investing terms matter most

(00:51:18) - Managing the dynamic between a founder and an investor during company growth

(00:56:44) - Establishing a sustainable, differentiated position

(00:59:08) - Defining the distinction between a founder and an investor

(01:00:18) - Reflecting on lessons from exiting a business

(01:03:52) - Exploring the VC-to-VC relationship

(01:08:01) - Plans following their book release

(01:11:34) - The kindest thing anyone has ever done for Elizabeth

Founder vs Investor

Introduction

Patrick
My guests this week are Liz Zalman and Jerry Neumann. Jerry has been on the show two times before. He's an early-stage venture capitalist and adjunct professor of entrepreneurship and an amazing writer. Liz is a two-time founder, most recently co-founding StrongDM, which Jerry was a seed investor in.

Together, they've written a book called Founder vs Investor that lays bare the relationship at the core of most new businesses. They take specific moments in a start-up's life up to its IPO and share their experiences on the friction that inevitably appears between founders and investors.

In our conversation, we discussed the strong reaction to the book, the incentive problem at the root of the relationship and explore best practices for other founders and VCs to follow. Now please enjoy my conversation with Jerry Neumann and Liz Zalman. So I just hit record because we were having a conversation around the book itself, maybe someone can read the quote on the back?

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