Keep Your Investors Updated (Part II)
By Kevin Vela
A few years ago I wrote a blog about how important it is to keep your investors updated. That is as true today as it was then, but I want to highlight another benefit that I neglected to point out then: the process.
For the founder, the process of putting together the investor update may be the most beneficial outcome of the entire exercise.
In order to send out a monthly investor update, a founder needs to:
- Be accountable to a deadline
- Prioritize investors and the time needed to construct the update
- Track important data and metrics
- Synthesize the data and analyze the metrics
- (From time to time) send out bad news
- Solicit feedback
From what I’ve seen, each step in the process ends up having a ripple effect on other parts of the business. Whether it’s better understanding your metrics or building in a system of goals and accountability, you’ll see that delivering the actual investor update is a by-product of building a healthier startup.