We have the honour to have a guest blog from Stephen Finday, founder of Invrep.co, in a topic very close to our hearts - how to make reporting to investors one of the best investments of your time. If you are running a startup or SME, you should have a look at Invrep.co and turn your investors into a small army of great supporters.
"We know that attracting new shareholder and raising equity can be a long and difficult process for entrepreneurs. It takes time and effort. And can be a real distraction from your business.
As active angel investors, as well as serial entrepreneurs, we've seen these challenges from both sides of the table.
After the funding round is closed it's natural to take a breather, and want to focus on your "day job" again - getting sales; releasing the latest version of your product; using your new found finances to start recruiting etc.
Frequently, the investors you've just got on board are overlooked. However, keeping your new investors engaged can be one of the most valuable things to do.
Engaged investors help companies achieve better growth - providing insights, introductions and market experience. Not least, quick access to money should you need subsequent financing.
Don't just take our word for it
Nesta conducted a detailed report into successful startups and concluded that companies who have engaged investors significantly less likely to fail".
The Kauffman Foundation found that angel investors who interact with their companies more than once a quarter achieve 9x better returns than those who interact with their companies less than once a quarter. Meaning companies with engaged investors are much more successful.
Keeping investors updated and engaged should be quick and easy. Being a great return on your time - not a distraction.
The most appropriate reporting rhythm for angel-backed companies is sending updates across key areas of your business once a quarter; and providing ad-hoc updates (or posing questions for help) should something material crop up in between.
Most investors will have a similar appetite for information: a combination of written insights and some data. All investors will be keen to use this information to help you grow your business. After all, it will help them deliver a higher return!
We understand that it can take time to know exactly what to report. And even longer to set up professional looking formats to do this. That's why we set up Invrep.co. To make your life easier as a CEO.
Invrep.co enables great investor reporting in just a few clicks. It takes a couple of minutes to create your company profile; and about 10-15 minutes each quarter to give your investors detailed feedback. That's all you need to do to start benefitting from great investor engagement.
We do most of the hard work: making sure it looks professional, calculating variances and creating charts and analysis for you.
We are already supporting over 50 startups with their investor reporting and are adding dozens each week. We're ready to help you engage better with your investors, and save you time."
Stephen Finday is the founder of Invrep.co