It’s important for a startup to have regular communication with investors during the fundraise. It keeps the investor up to date on your progress and helps build the relationship.
For updates, find a cadence that fits your business. For fundraising, every two weeks is a good pace. After funding move to monthly or quarterly updates.
In your communication in person, over the phone or in email talk about sales first. If you’re pre-revenue talk about activity with beta customers and prospective. Always have some engagement ongoing with the customer – no engagement means no traction. No traction means no funding. If you don’t have customers then start engaging with customers in some manner.
Call out team members who did something great. Show what team members are doing to increase your customer engagement. This provides another angle for showing the progress you are making.
Talk about how the product is moving forward. Highlight customer usage and the customer ROI which is what the customer is getting from the use of the product. Use anecdotes till you have numbers but get to numbers fast. For example, take one customer and calculate their ROI from their usage of the product.
Show all three levels of the fundraise and include interest, committed, and invested numbers. If the investor indicates they are considering a $50K investment, that’s interest. If the investor commits to investing, that’s committed. If the investor funds are in your bank account, that’s invested.
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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.