{"id":45501,"date":"2023-10-20T15:44:01","date_gmt":"2023-10-20T15:44:01","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/why-startups-need-to-always-keep-investors-informed-and-how-to-actually-do-it-startupsmart\/"},"modified":"2023-10-20T15:44:01","modified_gmt":"2023-10-20T15:44:01","slug":"why-startups-need-to-always-keep-investors-informed-and-how-to-actually-do-it-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/why-startups-need-to-always-keep-investors-informed-and-how-to-actually-do-it-startupsmart\/","title":{"rendered":"Why startups need to always keep investors informed and how to actually do it – StartupSmart"},"content":{"rendered":"
\"\"<\/div>\n

Angel investor Adrian Stone has more than 50 investments, but more than 40 of them haven’t sent him a monthly update this entire year.<\/p>\n

He says this is a big problem – investors need updates even if it’s with bad news, and founders will miss out on vital advice if they don’t pick up the phone or write a simple email.<\/p>\n

\u201cIt\u2019s disappointing that once the money\u2019s in that it feels like I\u2019m no longer part of the team,\u201d Stone tells StartupSmart<\/em>.<\/p>\n

\u201cWe invest in a line not in dots.\u201d<\/p>\n

\u201cIt\u2019s almost human nature, you only want to inform investors when something good happens but they\u2019re not just here to hear the good news. That person may just have the perfect solution.\u201d<\/p>\n

Experienced investors understand the complexity and rocky nature of startup growth, he says, and they have been through the common ups and downs of growing successful businesses.<\/p>\n

\u201cIt takes nine years from inception to IPO and most good investors know that,\u201d he says.<\/p>\n

\u201cI\u2019ve had more knock-backs and setbacks than probably anyone.”<\/p>\n

How to keep your investors updated<\/h3>\n

Stone says he wants a monthly update from his startups, even if it’s just a simple email with nine bullet points.<\/p>\n

These points should quickly outline what the startup is working on including any deal, plans for the next month, what assistance they need and key metrics, especially the numbers that are “make or break”.<\/p>\n

\u201cIt’s so I can get a feel for how a business is growing,\u201d Stone says.<\/p>\n

Keeping investors in the loop like this can help prevent nasty surprises.<\/p>\n

If the numbers aren\u2019t good, Stone recommends a phone call instead of the regular email.<\/p>\n

\u201cIf it\u2019s bad news, that wouldn\u2019t be in a monthly update,\u201d he says.<\/p>\n

\u201cFounders don\u2019t use the telephone anywhere near enough with their investors and advisors.\u201d<\/p>\n

This can help the startup team and its key sponsors address issues before they become horror stories, Stone says.<\/p>\n

\u201cYou can\u2019t call me too often to annoy me, provided you\u2019re not asking me how to make your morning breakfast – it should be something that you genuinely need help with,\u201d he says.<\/p>\n

The unseen work<\/h3>\n

Many founders don\u2019t even recognise the work that investors do behind the scenes, Stone says.<\/p>\n

Stone recently helped a founder he\u2019s interested in investing in get inside an organisation where they previously couldn\u2019t even get passed the front door.<\/p>\n

\u201cI made a phone call to the CEO,\u201d he says.<\/p>\n

Shortly after, the organisation contacted the startup.<\/p>\n

\u201cThey didn\u2019t even know I had made a phone call, they thought it was because of their email,\u201d Stone says.<\/p>\n

He says experienced startup investors carry a wealth of information and networks with them that can streamline the growth process if only founders would continue to work alongside the people that backed them in the first place.<\/p>\n

\u201cIf you lose an account, how do you turn an account around, they\u2019ve got a problem with a client, I can make a phone call and speak with the CEO because I know him,\u201d Stone says.<\/p>\n

\u201cMost of the time the founder doesn\u2019t even know I\u2019m doing that.\u201d<\/p>\n

He says that when a founder starts a continuous relationship with an investor there\u2019s no reason why it should stop once the money is in.<\/p>\n

\u201cRelationships still count in business,\u201d Stone says.<\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter,<\/em> LinkedIn<\/em> and<\/em> Soundcloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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