Investor communications done right

I was recently reading the investor update email of one of our startups. The startup’s founder pays a lot of attention to keeping investors in the loop and requesting their support. I really appreciate that, and I’m sure most of the other investors do as well. From the 3–5 investors that the founder highlights in each update for having helped her out, this seems to be the case.

One consequence of the founder’s emphasis on having healthy communications with her investors is that the update emails can be pretty long. And the most recent update was even longer than usual. The founder recognized this, and prefaced her update email by stating that she’d be very glad if we would read it all. But just in case we weren’t able to, she also wrote a summary of the most important points.

There are two important takeaways from our founder’s actions.

The first is the value of keeping your investors updated. As shown in this case, doing so makes it more likely that your investors find ways to help you out. It also makes your investors more likely to continue to invest in your company in the future. Our founder’s approach serves as a great example of investor communications done right.

The second takeaway is that, if a founder spends the time to keep you updated on the progress of their company, and you’ve invested in that company, the least you can do is to fully read their updates. The update is the result of the thousands of hours of work that the founder and their team have put into the company, and the multiple hours that they have spent summarizing the outputs of that work for you. The least we can do as investors is to spend the 30–60 minutes necessary to read the update and think about how we can help out.


Originally published at Thoughts of a VC.