That is what I have always asked from my entrepreneurs. If there is bad news, I want to know about it. Same for good news. But PLEASE, no surprises!
Entrepreneurs and their VC’s (and board members) have a very delicate relationship. We all like to think that it’s always open, friendly, etc., etc., etc. But looming overhead is that cloud, which never quite goes away… you can think of it as the “power” cloud.
The most effective boards are those that discuss real issues, not just get together periodically for an update by the CEO. Our job on the board (other than governance, etc.) is to keep the company on track, raise new issues that perhaps are not part of the day-to-day, and make sure that management has the full picture. For these discussions to have any impact, the board needs facts – be them good or bad.
Today in a casual entrepreneur, “ex-VC” meeting, I was asked my opinion on how to manage boards, and when best to deliver troubling information. My answer: right away.
After all, when you really think about it, who really has power over whom?
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