Tips for “Managing” Your Investors

I asked one of the very best operators I know how he managed his relationships with investors so successfully, notwithstanding going through the ups and downs of a startup.  This, in its entirety, is his response.  It's very insightful and I guarantee if you follow it you are sure to make your investor relations better.

1. Written updates
   1. Weekly at beginning
   2. Phase to monthly over time
   3. Content:  everything that’s going on in the business, from sales to employees to partners

2. “Operating reviews”
   1. As often as investors will agree to
   2. Content: in-depth analysis of business, including industry trends, strategic initiatives, benchmarking analysis, etc.

3. Immediate sharing of news
   1. Good news to most junior person first [let them get some credit]
   2. Bad news to most senior person first

4. Communicating among individuals at investor company
   1. If have occasion to meet with senior person, be sure to call next in line and give complete, detailed summary of what was discussed at meeting
   2. Encourage more junior contact to share information with more senior folks; ensure that information is flowing among the individuals at the investor company

5. Identify ways in which investors can be of assistance
   1. Generally speaking, they want to be helpful but are often frustrated because they don’t know what to do
   2. Finding something – anything – that they can do to help will ensure their attention doesn’t go to non-value producing activities

Overall goals

• No surprises, good or bad, ever
• Ensure that each individual from the investor company will always be able to address any questions that an outsider (e.g., LP) may ask about your company or industry; be sure they learn the details about industry announcements from you on a timely basis