Having healthy communication between investors and founders can be a lifesaver for the company. As an angel investor or a VC, you are one of the very few people that the founder can talk about their startup in detail. Whether it is mentioning success or large concerns, you are in a position where you can listen and give advice. By the end of the day, if there is something you can do as an investor to save the startup, you would wish to know it at the right time.
This is why setting a monthly update with the founders is one of the healthiest ways to communicate. You get to receive one file summarizing the past whole month and future plans, and the founder gets to take a step back and see the wider view after a sweaty month.
In this article, we will discuss seven items you can request from your founders to include in their report. The key is to get as much information from multiple angles in a summarized manner.
One or two paragraphs to set the context and remind the reader of key issues mentioned in the previous update.
2. Milestones Achieved
Mentioning in a few points all the milestones achieved within the month.
Preferably, these are milestones initially agreed upon by the founder and the investor. It serves as a key check that the startup is advancing according to plan.
3. Pending Milestones
Update on the current progress of pending milestones. This includes where things are standing and their expected date.
4. Successes and Setbacks
Mentioning key successes beyond milestones. This could include being mentioned in the media, discovering a new marketing approach, or attracting a large customer.
Setbacks are also healthy to mention and you should ensure the founders can trust you with sharing bad news. In this manner, you get alerted of all concerns, and maybe you can initiate help with your expertise or network.
Update on the latest metrics the founder keeps track of as well as the cause for uncommon changes.
Measuring metrics periodically is a great way to keep things in check and objective. You should spend some time with the founder to talk about metrics that matter. Check out our article here on primary and secondary metrics.
6. New Hires
An update on key persons joining the team, their background and skills, and how they will boost the company.
7. Ask for Help
Make sure you let the founders know you’re there to help. This could be by making introductions or providing expert opinions.
Setting a periodical update with your founders is key to healthy relationships and optimizing the benefits the startups receive.
At VeFund, we provide you with ready-made templates and trackers to organize all the reports and metrics published by your startups. Get in touch with us from here to know more.