Ever thought your investors were your buddies? Barry Givens, Managing Partner at Collab Capital, learned the hard way that this is a founder’s biggest mistake. He’s sharing this crucial lesson to help other entrepreneurs navigate the complex world of venture capital.
From Founder to Venture Capitalist
Givens brings a wealth of experience to the table. Before co-founding Collab Capital in 2018 with Jewel Burks Solomon, he led the tech brokerage Dream Reality and served as managing director at Techstars. Collab Capital itself has made significant waves, recently raising $75 million for its second fund, backed by major players like Apple and the Leon Levine Foundation.
He and Solomon didn’t start Collab Capital with a long track record. Their initial strategy involved taking strategic roles, like Solomon’s position at Google for Startups and Givens’ role at Techstars, to build the credibility needed to launch their fund. This careful planning helped them secure their first round of funding in 2021, ultimately leading to a $50 million fund focused on supporting Black founders.
The Investor-Founder Dynamic
On the “Black Tech Green Money” podcast, Givens candidly discussed his biggest founder misstep: viewing investors as friends. While he emphasizes that he and Solomon are deeply committed to having founders’ backs, he stressed that investors have a fiduciary duty to the capital they manage.
There’s going to come a time where…I’m going to have to balance out what is the best thing for the capital, the million dollars that I gave you. — Barry Givens
This means that even the most supportive investor might eventually have to make decisions that prioritize the fund’s capital over a founder’s immediate desires. Understanding this distinction is vital for founders to manage expectations and maintain professional relationships.
Recognized for Impact
Givens’ dedication to fostering wealth-building opportunities for underserved tech founders hasn’t gone unnoticed. He’s been recognized among the AFROTECH™ Future 50 in the Dynamic Investors category. He sees this recognition not just as a personal achievement, but as a testament to the long-term impact Collab Capital aims to create over the next 20-30 years.
What are your thoughts on Barry Givens’ advice? Have you ever mistaken an investor for a friend? Share your experiences in the comments below!