You're facing disputes among co-investors. How can you steer your portfolio company in the right direction?

Firstly, you need to remember that at the end of the day, everyone is working towards the same goal - to create a successful outcome for all shareholders. Take the time to talk through your differences in a separate 1-1 meeting outside the boardroom. Walk through all the areas where you agree and disagree and try to find some common ground you can work on together.

At pre/seed, it takes a village working collaboratively to help a startup succeed. As such, it's the founder's job to get the best people on the cap table to ensure success. In the event of a disagreement among investors, open & transparent communication is critical. The founder must take charge, listen to all parties, make a swift & decisive decision in the company's best interest, and then provide a clear rationale. While not everyone will agree, it's easier to gain support by hearing them out and then explaining the logic. Ultimately, the CEO is in charge, and investors must respect that. Good investors will recognize the importance of a founder's time and act promptly to resolve issues, allowing the founder to focus on building.

When dealing with disputes among co-investors, it’s essential to take a strategic approach. First, listen carefully to all parties involved to understand their concerns and perspectives. This helps in addressing the root causes of the disagreement. Next, facilitate open and honest communication between the investors. Creating a space for dialogue can often reveal common ground and lead to mutually acceptable solutions. Finally, focus on the company's best interests. Ensure that the resolution aligns with the company’s goals and growth plans, rather than personal disagreements. Guiding the discussion back to the company’s success helps in making decisions that benefit everyone.

I have learned that when facing disputes among co-investors, the key is to bring the conversation back to facts and the long term vision. I start by aligning everyone with the company’s mission and goals, then leverage comparable valuations from industry peers to ground the discussion. It's also essential to highlight the unique value drivers that differentiate our portfolio company—whether it’s technology, market positioning, or strategic assets. If needed, I’m not afraid to bring in an independent third party to validate the valuation and help resolve differences. The objective is always the same: to ensure we’re maximizing value together and keeping the business on the path to success.

To steer a portfolio company amid co-investor disputes, start by identifying the root cause of the conflict, whether it's differing strategies, timelines, or expectations. Facilitate open communication between all parties, focusing on shared goals for the company's growth. As an investor, provide a neutral, solution-oriented perspective to mediate the dispute. Encourage a data-driven approach, using company performance metrics to guide decisions. If necessary, revisit the original agreements and align everyone on key objectives. Maintaining transparency, diplomacy, and a focus on long-term value can help navigate and resolve the situation.