HOW TO WORK WITH YOUR VCs: Treat them as members of the family

What an amazing past 14 days I have had with startups! Wow!

• Launch of public beta (Nurien.com )in Seoul, Korea for an amazing game startup
• Completion of documents to raise $25 million B round for a hot stealth mode new enterprise
• Attack on startup that is taking away market share from a stogy old-thinking public corporation
• Startup gets surprised and sued about disputed patents by corporation with a lot more cash
• Angel declines to invest at last minute in a struggling startup
• Board members dispute compensation of first-time founders
• CEO struggles with board meeting documentation and processing
• Discovery of VCs investing in competitors narrows list of candidates for future financing
• Hot marquee customers suddenly sign up

All those are events that impact your board of directors. You are on it and are expected to lead it.

Q: "So how do you manage your business when those things happen? "
A: "I suggest you treat them as part of the family."

Here is what I mean about how to work with your board when big news arrives:

• Keep them informed = no surprises.
• Communicate the bad news immediately = do not hesitate
• Celebrate the good news = uplifting moments are precious and energizing
• One bad day is not the end = most days are not terrible
• Ask for advice  = all at once, not 1:1, keep everyone part of the dialogs
• Conference calls work great = do them quickly, keep them short, as soon as discussion is needed
• Remember your lawyer = keep the legal people in the loop, listening in as much as possible
• Keep information to a minimum = if you need to talk a lot, schedule a conference call
• Expect it, this is normal = it is going to happen, all of it

BOTTOM LINE: Your board of  directors is not your authoritarian parents. Treat them as family members, not dictating bosses. Family help you, so get their help. They can do more when you give them time to think. Include them whenever you wonder if you should, they'll tell you thank you and keep rooting for you. When you learn to do this, it will show how wise you are and add a large element to building your unfair advantage.