From my experience, very few entrepreneurs and investors communicate effectively, but one of my recent investments sends out bi-weekly updates that have been great for both the entrepreneur and the investors. I think it’s an excellent template for angel investor updates and here’s how to follow it:
- Frequency – Bi-weekly to monthly depending on how fast the business is moving
- Audience – Current and prospective investors, mentors, board members and very close family and friends
- Length – Short and sweet. Use bullet points!
- Information to Include –
- Fundraising Status – Is the company still raising and how much do they need?
- Sales, Marketing and Distribution – Key new clients and partners, status of major deals in pipeline, important new leads
- Key Promotional Events – Important upcoming trade shows, community events, etc
- Industry Updates – New market research reports or major industry news
- Product Updates – Major improvements or additions
- Staff Updates – New hires and job postings
- Mergers and Acquisition Offers – No confidential details, just basic info
- Requests for Help! – Does the company need feedback? More investors? Connection to prospects, suppliers, distributors, etc? Most investors want to help, but they need specific requests.
NOTE: Quarterly financials should also be sent to investors.
What Outcomes Can This Produce?
- New Investors – More progress = more investors
- New Connections – You never know where investor, employee, customer and other connections will come from.
- Less Conflict – Potential conflicts can be addressed before they blow out of proportion.
- More Focus – Entrepreneurs can focus on business instead of investor questions.
So there you have it — an informed network is an effective network.
Any other important information that should be included? Do you have any experience with effective / ineffective angel investor communication? Leave a comment.