Can trust between VCs and founders outweigh conflicts of interest?

From The trust thing by Roy Bahat:

The investor-founder relationship is, by nature, out of balance. Founders are devoted to the most important (work) project of their lives; investors have the luxury of more than one such project at a time. Founders can do incredibly well personally, under circumstances where the investors may do fine though not great. Founders know much more about their company, investors know a little more about what’s happening elsewhere in the world (maybe).

The ingredient in the startup stew that balances the potential bitterness of these differences: trust. When founders believe their investors will do right by them, even when it may be against their narrow, short-term self interest, and investors believe the same about founders, it’s magic.

Notes:
(1)  Cf. Conflicts of interest between startups and VCs.
(2) Cf. How to build trust with VCs.

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