Chapter 6 - Negotiating the Deal
IN THIS LESSON
Fulfilling Investor Expectations Beyond the Fundraise: Nurturing the Relationship
Upon successfully securing the necessary funds and concluding the funding round, a critical phase unfolds—the management of investor expectations moving forward. This phase should not be underestimated or relegated to silence. Instead, it demands an active approach, characterized by open communication and a consistent effort to foster the relationship with your investors. After all, as we've emphasized repeatedly, this is a symbiotic relationship that requires constant attention and care at every turn.
Outlined below are five fundamental actions that we strongly advocate for post-fundraise. These actions may appear straightforward, but their consistent execution demands discipline and dedication. It's worth considering scheduling these actions on your calendar to ensure their ongoing implementation:
Regular Investor Conversations:
Engage in regular dialogues with your investors. These conversations can take the form of meetings, calls, or even video conferences. Consistency is key here, as it reflects your commitment to maintaining an active rapport.
Proactive Monthly and Quarterly Updates:
Proactively deliver standardized monthly and quarterly updates to your investors. While these updates might seem routine, they provide a comprehensive snapshot of your company's progress. It's even prudent to inquire if some investors would prefer weekly updates to stay closely aligned with your journey.
Prompt Milestone Updates:
Keep your investors in the loop about significant milestones as they occur. This isn't merely an exercise in sharing news; it's about conveying the tangible progress you're achieving and involving your investors in the journey.
Metrics and KPI Transparency:
Share your metrics and key performance indicators (KPIs) with your investors. This transparency showcases the quantifiable strides you're making and further reinforces your commitment to fulfilling the shared vision.
Strategic Information Sharing:
Exercise discernment when sharing information, ensuring that you strike a balance between keeping investors informed and safeguarding sensitive details. While transparency is vital, consider collaborating with your leadership team to determine what information is suitable for regular sharing with your investors.
Bear in mind that the close of a funding round marks not the end but the beginning of your work. It signifies the start of delivering on your vision and maintaining a constant dialogue with your investors. Demonstrating proactive engagement is paramount, underscoring your recognition of the investor's vested interest in your enterprise. Never overlook the role that investors play in your long-term success. As you tread this path, remember that getting these foundational principles right lays a solid groundwork, rendering the journey smoother and more rewarding for both you and your invaluable supporters.