1. Build your startup with integrity
Updating your investors on a monthly basis is an important exercise of accountability that every founder should do. The worse thing that can happen to your relationships with your investors is when you take the "silent death"approach and decide to hide problems or skip on sending updates.
2. Comprehensively understand the benefits of updating your investors
Many of the benefits of updated your investors are not obvious and have changed over time. Startups are launching products faster and good investors understand this. Emailing these investors will get you customers, press, and users. Great performance will result in follow-on funding. Investors can point out the necessity of a pivot. Above all, investors worth having want to help!
3. Update your angels as if you’re updating future VCs
If you’re interested in scaling your business to its full potential with the help of VC investment. It is wise to begin your venture updating your angels in the same way that VCs like their updates. Many founders use RRE Ventures guide to keeping in touch with investors. Here’s the short version of the contents.
Highlights, Lowlights, Product, KPIs/Core Metrics, Business Development, Hiring, Financing, Press, Help Wanted/Asks, Kudos to Investors
4. Understand that the best investors love to help and ask for it
If you’re not sending the report because you’re ashamed of how bad your startup is doing, your making a big mistake. When you have problems, that’s when you should lean on your investors most. Leading angel, Jason Calacanis, says that nothing is more refreshing than getting an update from a founder that says:
You should not miss a deadline or send late updates to your investors. Consistency on the frequency of each update is key. The best founders are transparent, data driven and keep tet to a minimum on their updates. This avoids the “silent death” approach or the “can we talk?” update. When someone says “can we talk?” it’s over.
Jason Calacanis keeps a spreadsheet where the columns are the months of the year and rows are the startups he’s invested in. He checks off the date in the month that he got the last update from each startup founder. He monitors the spreadsheet weekly and if someone misses their second month he instantly calls them on the phone--so he can help!
6. Know what to measure for your type of business
There’s a balance between tracking too many and too few metrics. Most founder aren’t diligent enough to track simple metrics on a weekly basis. Since the seed stage is mostly about finding product/market fit and finding a repeatable customer acquisition process, most activities should be customer focused. Here are nine simple metrics seed stage SaaS startups should track weekly:
Cash on hand, Weekly burn rate, Monthly recurring revenue, New customers, Lost customers, Marketing qualified leads, Sales demos, Active sales opportunities, Customer net promoter score (NPS).
7. Tailor the templates you have leveraged to meet your needs and personal style
Founders all have their own personal styles in the same way that investors do. You, in collaboration with your investors, are the judges of what is best for your business. Since creativity is sparked my pulling ideas from many sources, refer to these personal update styles on the Quora post, “Is there a refined template for a seed-stage monthly investor update?”
8. Stay up to date and utilize on new investor updating trends and tools
SaaS applications are emerging for every department and business function. As we have discussed, consistent investor communication is of primary importance for founders because it increases focus, accountability, and alignment. Angeloop is our solution for the founder updates to seed investors.
P.S- This article originally appeared in angeloop. I'm the Product growth of niki.ai,ideal Personal Digital Assistant and a one-stop destination for all your commerce needs .