Are you keeping updated your investors?

Last updated 4 years ago First published 12 March, 2016

The famous Dan Martell, a serial entrepreneur founder of several successful startups (such as Clarity.fm), explained what he considers that it's right to maintain your startup investors informed. You should follow these advice to be known in the investor's world as a good CEO.

This decision tree has been deducted from this speech: http://www.danmartell.com/investoremails/

English Rating: ALL ages Shortest path: 3 nodes Longest path: 15 nodes Possible solutions: 10
Ana M. Martín I love fashion and technology. Because of that I've created two startups: eband.es and iboske.com
Transcription
  • How frequently do you send your investors an email update? Never (maybe in the annual meeting). After something good has happened (which may take months at first). Every 4-6 weeks.
  • Don't wait so long, keep your investors updated with
    numbers even if that great thing hasn't happened yet. You should keep them updated every 4-6 weeks.
  • Too bad!!! You should keep them updated every 4-6 weeks.
  • Well done! How do you send the email to them? Broadcast (CC, CCO, mailing list, etc.). Individually.
  • Not right! Send them individually,
    let them see you are grateful and specific to them.
  • Nice! Do you send them the numbers? Yes (even if they're not great). No (while they are not great).
  • You failed! Send them the numbers, and if they're not
    what you expected, explain them what you're doing to improve them.
  • Great! If it's a large email, do
    you start the email with bullet points? No. Yes I do (or not if it's too short).
  • Better tell him what you're going to cover in the email with some initial bullet points, and show later the different sections.
  • You're a pro! Do you begin explaining what has gone bad? No, if there is something bad I
    leve it for the bottom of the email. Yes, if there has been something bad.
  • Bad idea! The last thing that the investor will remember after reading your email are the things that have gone bad.
    Better explain them at the beginning and later tell what you're doing or what has gone right to leave him a good impression.
  • You're doing right! Do you
    include a Call-To-Action for the investor? Yes, anything that I need. No, he's an investor, I can't ask him for help. Yes, but based on his background.
  • Your investor is #1 person who wants you to succeed. Ask him for help (based on the investor's background).
  • Not very good, ask him for things you know he can help you. For example, if you
    want to be introduced to someone and he has him connected on LinkedIn, it will work.
  • You're a Master! One last thing, do you keep your team informed? Yes, I want them to feel collaboration and transparency. No, I don't want to distract them.
  • Come on! They need to know how it's going, if it's good news that will support them, and if it's bad news they will support you.
  • I'm impressed, you're really good on this, keep doing it this way!!!.