The relationship between founders and investors is not static. It shifts over time in response to market cycles. Some of these shifts are healthy corrections. Others create distortions that can harm both founders and investors.
Around 2021, an extraordinary amount of capital was chasing a limited number of deals. Money was inexpensive and abundant. As a result, many companies that would not have been funded in a more disciplined market received investment. Investors often found themselves competing aggressively just to participate. Founders increasingly favored investor-friendly instruments such as SAFEs (Simple Agreements for Future Equity), valuations climbed rapidly, and negotiating balanced terms became difficult.
Today, the environment is very different. Capital is more selective, concentrated largely in top-tier AI opportunities and a small number of standout companies. For most startups, fundraising is more challenging. Ideally, we are moving back toward a healthier equilibrium where thoughtful underwriting, reasonable valuations, and aligned incentives define the norm.
One notable trend from the prior cycle was reduced communication between companies and their investors. In some cases, portfolio companies became hesitant to share performance information. Strong investor relationships depend on transparency. At Rockies Venture Club, we now receive updates from approximately 93% of our portfolio companies at least annually, with many providing quarterly or even monthly reports. That level of engagement matters.
For me, angel investing has always been about more than financial return. It is about partnership. The opportunity to offer insight, make introductions, and help founders navigate difficult moments is what distinguishes early-stage investing from passive public market investing. In my retirement portfolio, I have no visibility into the individual companies inside my ETFs. In angel investing, the relationship itself is part of the value proposition.
The startup ecosystem spends significant time analyzing markets, financial models, competitive positioning, and technology. All of that is essential. But we sometimes overlook one of the most important elements of early-stage investing: building a durable, mutually beneficial relationship that extends well beyond the moment capital is wired.
As we move into 2026, one of my priorities is to focus on investing in companies where we can maintain close, constructive relationships well beyond the Seed stage. In a world defined by rapid AI innovation, market disruption, and extended time to liquidity, the quality of the founder-investor relationship may be one of the most durable advantages we can cultivate.
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