Several factors can erode trust between entrepreneurs and investors:
- Lack of Transparency: Withholding information or being vague about critical details can raise red flags. - Inconsistent Communication: Sporadic updates or going silent can make investors uneasy about the venture’s progress. - Unmet Expectations: Failing to achieve promised milestones or financial targets can damage trust. - Ethical Concerns: Any hint of unethical behavior, such as misrepresenting data or conflicts of interest, can be particularly damaging.