Are you wondering how to communicate with investors?
Communicating with investors is one of the most important parts of being an entrepreneur, startup founder, and CEO. It is one of the chief roles you are tasked with. One that few, if anyone else can do for you all the time.
It will make all the difference in funding, the terms of investments, survival, growth, the outcomes of an exit, the ability to achieve the mission, and what is possible next. So, how do you do it well?
The different stages and how you communicate with investors are the following:
The best time to be building your network, connecting with and vetting potential investors is well before your first attempt to do startup fundraising. Even before you really startup.
In this stage, you are reaching out passively. You are networking and learning about them. Seek their advice and feedback. This will help test your business plan, demand for investment, and help you identify any weaknesses or improvements to make before you really announce a round.
Communicating with investors at this stage is much more about building relationships with those who seem like a good fit for your values and mission.
When Raising Capital
Communications are going to turn much more professional and organized when you really move into fundraising mode and have an active round in play.
Even if you have personal relationships with members of angel groups and partners at VC firms, you still need to give them the substance needed for a professional investment. You have to make them look great and smart.
Even if they want to write you a check on the spot, they are going to need your pitch deck and other materials, and show they’ve done their due diligence. It is their responsibility to their capital partners.
When thinking about how to communicate with investors remember to keep up your passion, but back up your pitch with facts and substance. Keep this in mind as you send investor updates throughout your campaign.
After Closing The Round
It’s not over once you get the money in the bank. You may or may not have added a new investor to your board as an active director. Even if they are more passive, things will go a whole lot better with regular communication. Don’t make them feel like that parent or rich uncle who people only call when they want more money.
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