Communication Strategies for Investor Relations

Investor relationships don’t stop when the money hits your bank account. In fact, that’s when it really starts. Here’s how to keep your investors engaged, aligned, and willing to help when you need it most: 1️⃣ Be Transparent. No spin, no fluff, no hiding. If things aren’t going well, be upfront. Investors appreciate honesty and get frustrated when bad news is buried. 2️⃣ Early and Often. Don’t wait until a crisis. A quick monthly or quarterly update keeps investors in the loop and prevents surprises. 3️⃣ Ask for Help. Investors have networks, experience, and resources beyond capital. Need a warm intro? Struggling with manufacturing? Dealing with a hiring challenge? Be specific and direct. 4️⃣ Tell Everyone. It’s not just about your lead investor or biggest check-writer. Your smallest investor might be the one with the perfect connection or expertise to solve a major problem. 5️⃣ Make It Easy. Craft your request to be forwarded in one click. “Can you intro me to X?” is much easier to act on than a vague “any advice?” 6️⃣ Pick Up the Phone. When big problems arise, don’t just send an email. Get on a Zoom, call key investors directly, and have honest conversations. Hiding behind messages is a red flag. Investors aren’t just checkbooks. We are partners, AND we are on the same team. Keep us informed, make us feel included, and we’ll go to bat for you when you need it most. 🥇 If you win, we win. 🥇 ----- I'm Katie Dunn, an Angel Investor, Board Director, and Startup Advisor. I prepare founders for fundraising, and they gain confidence, resources, and connections. Check out my LinkedIn Strategies for Founders guide (link in Featured Section).

I've invested in two-dozen early stage companies, and have seen one main problem with almost all of them: Startup founders don't regularly communicate with their investors after securing funds. Why does this happen? It's not because founders don't want to send updates, they just don't have a plan. After analyzing the founders that DO do this really well, I found they follow a sequence like the one here. Use this as a template: 1. Introduction - Start with a Personal Note: Talk about your current life situation briefly (milestones, etc.) - Highlight what you will discuss in the update, especially any requests for help (introductions to people/companies/organizations, hiring needs, amplification of messaging, etc.). 2. Team Updates - Introduce any new team members and their roles. - Discuss any significant team milestones or planned hires. 3. Sales/Accounts - Describe new partnerships, distribution channels, or significant sales metrics. - Highlight any challenges or negotiations. 4. Financials - Discuss your current financial situation. - Include any investments, rounds, or significant changes in revenue. 5. Product/Service Updates - Discuss new product/service launches or improvements. - Address any discontinuations or phase-outs. 6. Conclusion - Offer a brief summary and express enthusiasm for what's next. - Ask for help where you need it (introductions, hiring, amplification of messages in public, etc.). Your investors want you to succeed. Communication doesn't need to be hard or haphazard. Use this template to talk to your backers each quarter and you'll find more & more of them want to help you. #startups #founders #angelinvesting

Effective communication with investors is a foundational yet often overlooked responsibility for founders. It's important enough to merit repeated discussion, given its practical impact. Regularly updating investors is not just a form of courtesy - it's a demonstration of your leadership and management capabilities in all situations. It’s also a great way to improve your accountability and focus as a founder. Unsure how to begin? Here’s a template you can use: Subject: Monthly update - April 2024 Dear investors, Here’s our update for April, highlighting key progress and developments: Product: - We've rolled out an enhanced feature set in our mobile application, improving load times by over 30%. - Launched a beta test for our upcoming product line, receiving preliminary positive feedback from early users. Sales and marketing: - Initiated a targeted ad campaign that has decreased customer acquisition costs by 18%. - Established a new partnership with [influencer], expected to double exposure in our target markets. Financials: - Revenue for April was €80K, marking an 8% increase from the previous month. - Effective cost management reduced our monthly expenses by 10%. - Our current burn rate is €30K, giving us a runway of 24 months with our existing capital reserves. Challenges: - Encountered unexpected regulatory changes affecting one of our product lines; currently strategizing compliant solutions. - Faced technical issues with our customer database, which have been resolved, but highlighted areas for improvement in our IT infrastructure. Next: - Planning to introduce two new product features aimed at increasing user retention rates. - Preparing to expand our market presence in Europe with targeted marketing efforts beginning next quarter. Warm regards, [next unicorn founder name] This format ensures you communicate effectively, keeping your investors closely aligned with your journey.

🎯 Your reporting can make or break relationships with your investors. After helping dozens of tech scale-ups optimize their reporting, here's what actually moves the needle. The 5 Non-Negotiables of Stellar Investor Reporting: 1. Strategic Context: Raw numbers without context are just noise. Start with your north star metrics and how recent decisions/market changes have impacted them. We had a founder who turned around an investor relationship simply by reframing their reporting around strategic objectives rather than just MoM changes. 2. Forward-Looking Indicators: Your investors aren't just interested in what happened. They want to know what's coming. Include Lead KPIs (sales pipeline quality, customer acquisition costs trends, churn prediction models). One of our scale-ups spotted a potential cash flow issue 3 months early through careful leading indicator tracking. 3. Transparent Risk Assessment: Here's where many founders get it wrong. They try to sugarcoat challenges. In my experience, investors respect founders who proactively identify risks and present mitigation strategies. It shows maturity and builds trust. 4. Consistent Cadence & Format: Sounds basic, but you'd be surprised. Pick a format that works for your stage (we can help with templates), stick to a regular schedule, and make sure historical data is easily comparable. Your investors should never have to ask, "Where's the report?" 5. Action-Oriented Updates: End every report with clear next steps and specific areas where you need investor support. Make it easy for them to add value beyond the capital. 🔑 Pro Tip: Create a "living" reporting template that evolves with your business. What worked at Seed won't cut it at Series B. 💭 Founders: What's the most valuable piece of feedback you've received about your investor communications? 💭 Investors: What's the best investor update you've seen and why? #VentureCapital #ScaleUps #InvestorRelations #CFOInsights #FinanceLeadership

🚀 Investors don’t just want to know where you’ve been—they’re focused on where you’re going. They’re looking for a clear roadmap, not just a rearview mirror. To keep them engaged and confident in your vision, your investor updates need to go beyond the basics. Here’s what you REALLY need to include to paint a full picture of your company’s future: 🩺 Financial Health: Investors want to see that you're managing resources wisely and planning for sustainable growth. ✅ Monthly Revenue: Your bread and butter—how much are you generating? This is the clearest indicator of your business performance. ✅ Month-over-Month Growth: Is your revenue scaling consistently? Steady growth signals market traction and operational success. ✅ Monthly Burn Rate: What are your monthly expenses? Keeping burn rate under control is critical for long-term success. ✅ Runway: How long can you keep going with current cash in hand? Demonstrates how prepared you are for the road ahead. ✅ Gross Margin: How much profit are you retaining after covering the cost of goods sold? This metric shows how efficiently you’re managing production costs. ✅ Customer Acquisition Cost (CAC): What does it cost to acquire a new customer? Investors want to know if your sales and marketing spend is producing healthy returns. 📈 Traction & Growth: Numbers are great, but investors also want to see momentum and strategic wins. ✅ Headcount: Is your team growing in line with your company’s expansion? Team size can be a reflection of scaling operations. ✅ Notable Product Releases: Keep investors excited about product innovation. Share breakthroughs that reflect your competitive edge. ✅ Market Engagement: How many users or customers are actively engaged? Highlight user growth, but also share insights on retention and customer satisfaction. Investors want to see not just growth, but sticky growth. ✅ Partnerships & Strategic Collaborations: Highlight any major partnerships, alliances, or collaborations that could drive future growth. Investors love seeing how your ecosystem is expanding. ✅ Pipeline of Deals or Opportunities: Show that there’s momentum in your sales pipeline. How many prospective deals are in the works, and how close are they to closing? This provides a forward-looking view of revenue potential. ⚠️ Pro Tip: If you're in a highly technical or deep tech business, write your investor updates in clear, non-technical language. Remember, updates often go beyond investors and reach advisors and strategic stakeholders. Simplify the complex to ensure everyone understands your key points and vision. Keeping investors informed is not just about transparency; it’s about building trust and enthusiasm for your company’s future. What else do you include in your investor updates? Let’s discuss in the comments! 💬 #InvestorUpdates #StartUpGrowth #FinancialHealth #Traction #BusinessGrowth #Leadership #DeepTech #ClearCommunication

Treat your investors as partners—not parents. Something many founders forget is that investors are in service to your company, not the other way around. But it's human nature: If you treat someone like a parent or boss, they'll often step into that role. This creates three major problems: 1. Limited perspective. Investors don't work at your company daily. Their advice should be one of many data points, not the final word. 2. Skewed power dynamics. When investors act as bosses rather than partners, it hinders the collaborative effort needed for startup success. 3. Toxic relationships. Founders end up seeking praise and validation, reporting rosy updates instead of addressing real challenges. As an investor, I can confirm this is true: Most of us don't want to be treated like bosses or parents. In fact, I'm wary when I receive overly positive updates. It makes me wonder what's really happening in the business. Instead, aim for a partnership. Make meetings authentic collaborative sessions. Focus on upcoming challenges and leverage your board's expertise to tackle them. To set the right tone: - Shift gears immediately after closing an investment. The fundraising process is unique—you're creating FOMO and selling your vision. Once the deal is closed, transition to building an open, authentic relationship. - Schedule a post-investment lunch. Discuss challenges openly and seek input. This builds the foundation for a true partnership. - Plan regular catch-ups between board meetings. Whether in person or via call, these maintain a solid, less transactional relationship. Remember, a balanced founder-investor dynamic isn't just about pleasantries—it's about creating an environment where both parties can contribute their best to the company's success.

Biotech Investor Preferences Shift - Companies Need to Walk Through Their Journey to Commercial Success Private biotech companies, even those in earlier stages, must have a compelling commercialization story to attract investor interest. Investors prefer backing companies with strong scientific foundations and robust clinical pipelines. They also increasingly expect companies to articulate a clear story about the unmet need in their target disease and the role their medicine will play. Describing the path to commercialization is crucial. This can be a challenging exercise, but companies are failing because they are not able to do this effectively. Fundraising Best Practices (abbreviated checklist) - Planning and Strategy: Ø Develop Multiple Plans: Always have a Plan B and Plan C ready, especially for clinical pathways. Ø Credible Commercialization Pathway: Ensure a clear and credible commercialization pathway. Ø Clear Storytelling: Companies often fail due to unclear communication of the unmet need and the role of their medicine. Simplify for investors but add nuance for disease experts. Communication and Storytelling: Ø Tailor Communication: Differentiate your messaging for investors (simple, clear) versus disease experts (nuanced, detailed). Ø Dual Presentations: Have two versions of your presentation – one scientific and one financial. Ø Highlight Commercial Opportunity Early: Emphasize the commercial potential early in the process, not just the science. Ø Evolve Your Story: Continuously update and adapt your story as your project and the external environment evolve. Team and Capabilities: Ø Highlight Capabilities: Clearly articulate why your team is the right one and what unique skills they bring. Ø Focus on Unfair Advantage: Identify and communicate your company's unique advantages and strengths. Ø Capabilities Across Functions: Highlight capabilities in critical areas like CMC (Chemistry, Manufacturing, and Controls), supply chain management, and other operational aspects. Commercial and Market Considerations: Ø Early Market Planning: Integrate commercial thinking from the preclinical stage. Ø Scenario Planning: Conduct scenario planning to understand how your product will compete in the market. Ø Understand the Market: Research the current therapeutic market, treatment guidelines, reimbursement decisions, and competition. Safety and Manufacturing: Ø Focus on Safety and Manufacturing: Address safety concerns and manufacturing capabilities as top priorities. Long-term Vision and Adaptability: Ø Adapt to Changes: Be ready to adapt your story and strategy as external circumstances and market trends change.   #privatebiotechfundraising #fundraising #biotech https://lnkd.in/eg8a9XWW