Thank you for addressing this important issue in your article—it’s something many founders overlook.

I completely agree with your point: the worst thing you can do is hide a relationship. Investors will inevitably discover it during due diligence, and any attempts to conceal it can seriously damage your credibility.

It makes them question what else you might be hiding.

To add to your insights, it’s crucial for founders to maintain clear boundaries between personal relationships and business.

As a CEO, your role is to form a winning team and drive the company forward, which sometimes means making tough decisions that can strain personal ties.

If a relationship is involved, consider formalizing roles through measures like licensing technology or consulting agreements.

That way, if investors require changes, there’s a clear path forward without undermining the business or personal ties.

Ultimately, keeping relationships and business separate is a lesson that saves founders a lot of headaches in the long run.