It is a wake up call. Most investors I have spoken with said; “they only hear from him (the founder) when asking for more money, extending the notes or asking for advice with regards to money”.
We have checked our own portfolio and we discovered the following embracing facts:
- Only 25% of our founders send up regular updates without our needing to request it.
- Only 30% respond to email requests timely.
- 62% of founders think that our annual portfolio audit request is not a priority for them, unless they are raising capital of course.
- Only 38% of all; founders completed it on time and half ass, if i might say.
As investors, we’ve all been there – feeling dumped! Before we wrote the check, it was all love: talking, emailing, texting, capting. After we wrote the check? Dead silence. Suddenly, we’re the interruption or nuisance. Added to the “Need to Know” list, yet we’re left out in the cold! You know what I mean? 😄I know that many investors will identify with me here.
Well, we were looking at how this has to change. Well we found the solution that works for us, it is now part of all our term sheet and investment documents. If we do not get our monthly / quarterly/ annually updates as agreed, it will be considered a breach of the agreement and we will demand our money back. That’s simple. We are putting yourself on the top of the list, number one, non negotiable. Period.
Founders Power Tips:
- Keep Us in the Loop:
Regular updates are not optional; they’re essential. Don’t make us chase you down for information. Whether it’s good news, bad news, or just news, share it promptly. We’re your partners, after all. - No Radio Silence:
Leaving us hanging is not cricket. We’re here to support you, especially during stormy days. Respond to emails and requests in a timely manner. It’s basic business etiquette. - We’re Your Allies:
We want to be in your corner. Keep us informed about your progress, challenges, and victories. Remember, we’re not just investors; we’re your advocates. - Actions Speak Louder:
It’s not enough to say you value our partnership. Show it through consistent communication. Transparency builds trust; silence erodes it. - The Truth, Unvarnished:
There’s no need to sugarcoat things. We can handle the truth. If there are issues, let us know early. We’re here to help find solutions.
Effective communication is the cornerstone of all professional relationships. It’s a fundamental truth that without communication, relationships stagnate and falter and eventually die a slow death all together.