/

Startup investing: it’s infuriating when CEOs go radio silent when things go south

It’s rare, but it still happens. Your company’s success also begins with the trust of your first investors. They are the first to take a risk and show their faith in you by writing that first check.

So, make sure to nurture that trust; it might just save you from difficult situations. The same goes for your partners, clients, and employees... Without trust, there is no business!

‍

Why and how should you communicate with your investors?

Investors spend time and energy reviewing your pitch before writing that first check. You need that funding to accelerate your growth, and at that stage, you know how to convince and win them over. You highlight the team’s experience, the traction, you explain your vision, and you demonstrate your leadership skills... In short, you know how to raise capital!

So, once you’ve successfully raised funds and things start to go wrong, it is crucial to communicate even more with your investors. Collective intelligence can be a real asset.

I still see entrepreneurs who rarely, if ever, send reports and who avoid their investors until they have no other choice. Often, they aren't the best entrepreneurs!

‍

My recommendations

It is frustrating for an investor who loses trust and begins to get annoyed by this lack of communication. And when trust is broken, things become even more difficult for the entrepreneur.

As an entrepreneur, I recommend being proactive in your communication with investors and keeping them regularly informed (monthly, quarterly, or even semi-annually, depending on the company's maturity) about your progress, challenges, results, and cash flow. This is even more true today, when cash is scarce and times are tough!

‍

Don't hesitate to contact us. At Super Capital, there is a VC funds and a community of Angel Investors. We know what they are looking for, so we can advise you on how to improve the management of your company!