Raising capital is a key step for most startup founders—unless your business is profitable from day one. However, securing a big fundraise brings significant responsibility. It’s not just about managing the capital, but also about maintaining strong investor relations. Without clear and transparent communication, you risk becoming a bystander as your startup either flourishes or falters.

History provides many cautionary tales: Jack Dorsey’s ousting, Steve Jobs’ boardroom battle, and Jerry Yang’s departure from Yahoo are just a few examples. These situations are far too common, but can founders avoid such outcomes? While you can’t control everything, here’s how you can steer your path.

Focus on the Investor, Not the Fund
If you want to stay in control after a big fundraise, do your research. Many founders boast about the prestigious firms backing them, like “I raised from Andreessen Horowitz” or “Sequoia is in my round.” But the more important question is: Who at that firm is your actual investor?

A firm’s name is important, but its partners are what matter. Their vision, work style, and experience are what will affect your startup. The person sitting across from you in board meetings is the one you’ll need to build a relationship with.

If possible, go beyond the reputation of the firm and focus on the investor. Are they hands-on or hands-off? Will they support you during tough times or bail when things get hard? Have they experienced the challenges you’re about to face?

Sometimes, the best choice isn’t the flashiest fund but the partner who understands your vision and is willing to commit fully. Remember, bringing on an investor is like a long-term partnership. You’ll be building together for at least seven to ten years. While you might not always find the perfect match, it’s important to know which compromises are worth making and which could be detrimental.

Do Your Due Diligence
Talk to other founders who’ve worked with potential investors. The right investor can make a huge difference. The wrong one? It can be disastrous.

Trust Your Gut: Pay Attention to Red Flags
If something feels off about a potential investor, listen to your instincts. It could be their values, their business approach, or how they deal with tough situations. These gut feelings are often correct, and this is someone you’ll be working with for years, through both highs and lows.

The last thing you want is to have doubts at the board level. The stakes are high, and ignoring red flags or hoping it’ll be fine rarely works out. If something doesn’t feel right now, it likely won’t get better later.

Don’t Treat Investors Like ATMs
Some founders only reach out to investors when they need more funding. While it may seem efficient, this approach fails to build the trust you need to stay in control when challenges arise.

Successful founders know that relationships with investors go beyond numbers. They’re about trust, transparency, and alignment. This means regular, honest communication—both during good times and tough moments.

Keeping investors updated on wins and challenges fosters predictability and reliability. When a crisis hits, it’s the investors who trust you that will stick by your side. Those you’ve kept at arm’s length? They’ll be the first to push you out.

A big fundraise brings both opportunities and challenges. The key to staying in control lies in choosing the right investors, maintaining open communication, and trusting your instincts. Build strong, transparent relationships, and you’ll have the support you need when it matters most.