The relationship with your investors does not end at the wire transfer -- it begins there. Well-managed investor relationships lead to introductions, strategic advice, follow-on investments, and advocacy in future rounds. Poorly managed ones lead to adversarial board dynamics and difficulty raising.
The Monthly Investor Update
Send a concise monthly update to all investors. Include: key metrics (MRR, growth rate, runway), top 3 wins, top 3 challenges, specific asks (introductions, advice, hires). Keep it under 500 words. Consistency matters more than polish -- investors want to see you are on top of your business.
Delivering Bad News
Never surprise your investors with bad news at a board meeting. If you are going to miss a target, lose a key customer, or face a crisis, communicate proactively. Investors can help solve problems they know about. They cannot help with problems you hide until it is too late.
Board Meeting Best Practices
Board meetings should be strategic discussions, not status updates (that is what the monthly update is for). Send the board deck 48 hours in advance. Use meeting time for discussion, decisions, and advice on your biggest challenges. Always end with clear action items.
Leveraging Your Investors
Good investors provide more than capital: introductions to potential customers, help with recruiting, strategic advice, and market intelligence. But they cannot help if you do not ask. Be specific in your asks: 'I need an introduction to the VP of Engineering at Company X' is actionable. 'I need help with hiring' is not.
Managing Investor Expectations
Set realistic expectations during fundraising, and you will never have to manage disappointment. Underpromise and overdeliver. If you think you can hit $500K ARR in 12 months, tell investors $350K and delight them when you exceed it.
