The Kind of Capital Most Founders Overlook: How Relationships Build Startups
You’ve heard the phrase: “It’s not what you know, it’s who you know.”
In startups, that’s not just a cliché—it’s a strategy.
This week on Zero to Traction, we unpacked a type of capital most founders underestimate (and often misuse): Relational Capital—the trust, credibility, and goodwill you accumulate and deploy in the relationships that drive your business forward.
If you’re building in isolation or leading with a take-first mentality, you’re probably leaving massive value on the table. Here’s how to fix that.
What Is Relational Capital (and Why It Matters More Than You Think)
Cameron kicked us off with a reality check: the startup ecosystem isn’t just made up of programs, pitch events, and capital—it’s made of people. Real people. Mentors, investors, facilitators, advisors, customers, fellow founders. And these people aren’t just resources. They’re relationships.
And every time you ask for help, you’re spending social capital—the trust someone is extending on your behalf. That “triangle of trust” (you → someone who trusts you → someone they know) is one of the most valuable structures in the ecosystem. But only if you treat it with respect.
Don't Burn the Bridge You're Trying to Cross
Here’s a mistake we see all the time: a founder shows up out of nowhere and asks for an intro to an investor or subject matter expert.
The problem?
We don’t know them. We’ve never seen them at events. They’re not part of any programs. They haven’t done the work.
And now we’re being asked to spend our social capital introducing someone we can’t vouch for.
Pro tip: Your relationships are built before the ask. That means showing up, engaging, sharing what you’re working on, following through on feedback, and being transparent about your goals.
Help Me Help You: How to Make a Great Ask
When you’re ready to ask for an intro, remember:
Make the ask specific
Are you looking for a mentor conversation? A warm investor intro? Product feedback? Be crystal clear.Provide the context
Share a short, forwardable email with who you are, what you’re working on, and why this person is relevant.Make it easy to say yes
Don’t make your referrer chase you down for info. Equip them to be your champion.Follow up—quickly
You own the relationship after the intro. Respond promptly. Show gratitude. And close the loop so the connector knows how it went.
Investors Are People, Too
You’re not pitching spreadsheets. You’re pitching humans.
And those humans have LPs, investment committees, and their own goals.
So before you slide into their inbox, do your homework. Read their thesis. Understand what they’re looking for. And most importantly—don’t waste their time if you’re a mismatch.
Not every meeting will lead to a check. But every meeting is a chance to build trust. The investors who pass today might introduce you to the ones who say yes tomorrow.
“Unserious” Is a Reputation You Don’t Want
It’s one thing to be early. It’s another to be unprepared.
Worse still? Misrepresenting relationships or inflating progress.
We’ve both been listed on decks as advisors for startups we barely spoke to. That’s not just tacky—it damages credibility fast. And this ecosystem has a long memory.
If you want people to invest time, money, or credibility into your startup, be someone they want to bet on: clear, trustworthy, committed, and coachable.
Light the Beam Moments
Cameron likened it to the Kings’ season: some games, you play well but fall short. Still, you build momentum. Eventually, you start winning.
Every time you form the right connection, take action, and build trust—that’s a light the beam moment in startup life.
And if you need a solid fidget toy while thinking about your next ask? JDM recommends the Speks Mini. (Not the regular ones. You’ve been warned.)
In Summary: Relationships Are the Startup
Your pitch, your product, your code—they’re all critical.
But your ability to build and manage human relationships?
That’s what gets you your next customer. Your next hire. Your next check.
So get intentional. Be generous. Communicate clearly. And never forget:
Relational capital compounds—if you manage it well.
About Josh David Miller
Over the past decade, Josh David Miller has empowered over 100 startup founders and innovators to launch and scale their ventures. As the driving force behind the Traction Lab Venture Accelerator,
Josh specializes in guiding early-stage startups through the intricate journey from ideation to product-market fit. His expertise lies in transforming innovative concepts into viable, market-ready solutions, ensuring entrepreneurs navigate the challenges of the startup ecosystem with confidence and strategic insight.
About Cameron R. Law
Cameron R. Law is a Sacramento native dedicated to building community, growing ecosystems, and empowering entrepreneurs.
As the Executive Director of the Carlsen Center for Innovation & Entrepreneurship at California State University, Sacramento, he leverages his passion for the region to foster innovation and support emerging ventures. Through his leadership, Cameron plays a pivotal role in shaping Sacramento's entrepreneurial landscape, ensuring that innovators and builders have the resources and support they need to succeed.
