StartUps Should Keep Investors Informed With Monthly Updates

Startup investors aren't just there to blindly dump money into fledgling businesses and hope for the best. If you're running a startup that has received funding from investors, it's only right to keep them informed of your company's performance, even if it's just through brief monthly emails. Here's why.

Delivering letter image from Shutterstock

When you're operating a start-up, it's easy to become so focused on making the business grow that you forget to keep all those who have invested in your company in the loop. But investors don't just want to be faceless providers of cash and they don't just want to hear the good news. They want to be part of the development of the business.

As veteran angel investor, Adrian Stone, told Startup Smart:

"It’s disappointing that once the money’s in that it feels like I’m no longer part of the team; we invest in a line not in dots.   It’s almost human nature, you only want to inform investors when something good happens but they’re not just here to hear the good news. That person may just have the perfect solution."

Investors like Stone can not only provide funding, they can also work behind the scenes and have valuable contacts that can be leveraged.

Stone suggests for startups to send their investors monthly updates; just a few bullet points outlining plans for next month and anything they need assistance with. Try not to include any bad news in the monthly update emails since you should always deliver that kind of information personally, which can be done over the phone.

You can read more about Stone's insight on startup investors over at Startup Smart

[Via Startup Smart]


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