Venture Culture: Trust and Contracts Built on Relationships

In the scramble of forming new teams, launching a startup, or assembling a sports squad, most people get hung up on paperwork—formal contracts, signatures, endless email trails. But the most transformative leaders and teams build their foundation on trust. Years ago, one legendary group of collaborators signed ten one-dollar bills as ‘contracts’ with each other, a playful but deeply meaningful gesture of commitment. These contracts weren’t worth much on paper, but in the coming months, through grueling work in a half-built office and stormy nights spent wiring up their own power, those signed bills became symbols of trust that nobody wanted to violate.

The culture that grew from these micro-commitments was contagious. Instead of waiting for lawyers to tell them what was allowed, these founders set their own rules—calling partners, hashing out issues honestly, and keeping promises even when circumstances changed. Eventually, this trust-based approach spread, re-shaping the whole industry into one where reputations, not just legal documents, determined who got the next deal, introduction, or shot at a breakthrough.

Modern behavioral research confirms that reputation-based systems outperform rule-bound ones, so long as there’s accountability and visible reciprocity. The best deals still rely on mutual understanding and a willingness to do the right thing—even when nobody’s watching.

As you start your next collaboration, take a step back and make all expectations, hopes, and fears explicit before finalizing any agreement. Treat even informal promises as if they’re written on ten crisp dollar bills—your future depends on honoring your word. When someone in your network makes a commitment, track who follows through and who doesn’t, and let this guide your trust in future opportunities. By leading with integrity, you’ll find yourself surrounded by partners who do the same. Put this into action today.