Investor engagement has a significant impact on the innovation of a company and the likelihood of a successful exit. We all know monthly and quarterly investor updates are part of the flight plan of any startup.
The question is: Do we do it the right way?
Focusing on the updates and linking them to your financial success can be a game-changer.
Transparency
Your investors have other investments and you could be in the long line of their ventures. Giving them transparency can help you stand out among other startups. By consistently providing investor updates, you remain at the forefront of their minds and gain access to their vast expertise, valuable resources, and financial support, enabling your business to flourish.
Accountability
The benefit of accountability - it is why most of us have a gym buddy. Founders can utilize this too by sending monthly and quarterly investor updates to reflect and hold us accountable. Investor updates can also help us better understand what is and is not working for our business.
Communicate
Regular and consistent communication with investors is absolutely essential for the success of a startup. If your investors don’t know what’s going on in your business, they don’t know how to help.
Unify your data, increase investor confidence, and provide a holistic view for your leadership team.
So, make it a priority to send out your investor updates. This is not just for their benefit but for your own success and growth.