It’s been nearly a year since we raised our first round of finance from a relatively large number of angel investors and there is plenty to report (puns intended). When we set out, the scaremongers warned us that this would lead to lots of effort spent managing investors for little return, but what we’ve experienced is quite the opposite. Not only is our monthly reporting not a chore, but we look forward to doing it and would bet that we get a lot more out of reporting than we put in.
With that in mind, here are the top four reasons that investor reporting has benefited us more than our investors:
- Time to stop, reflect and progress: We look at stats daily, though in the chaos of running a company it is easy to lose sight of the big picture. So, in the two hours or so spent producing the monthly report we drill down on how we are performing versus our objectives and what we can do differently to really accelerate the business
- Avoid surprises: Sending regular updates means we (and our investors) never get caught out by a surprise. It also means our investors have time to step in and assist should something go wrong. Try popping a surprise bit of bad news on an investor and then asking for help, I’m sure you can figure how they’ll react
- The network effect: Our investors have become our biggest brand advocates, and as they know what is going on they’ve been great at making introductions to members of their own networks who have been able to help us through our various stages of growth. In fact, each time we send out a report it seems one or more of our investors has another person we just have to meet
- Funding round X: The reality is that most of our startups will need more than one funding round to reach our goals. So long as the investors are kept up to speed by our regular reports, we know that when that next funding round comes about it will be a warm audience we’re pitching to instead of one that’s been kept in the dark
The list of benefits could go on but I’m sure by now you get the point. We’ll do another article on the key elements of a report in the not-too-distant future, but for now know that these reports don’t have to take long. If you’re worried about how much time these reports will take, we suggest looking into a tool like Invrep, who are currently raising funds on SyndicateRoom. Read Invrep’s pitch here.