For many entrepreneurs, the process for obtaining financing can be expensive, lengthy and require a lot of dedication.
Normally, after obtaining funding, the entrepreneurial team is engaged daily in growing the business (which is normal) and this can cause for the investor to be “left out” and fail to keep him/her fully informed about the developments in the company.
You can see on our channel a video that speaks a little of that context:
The current situation of many startups that pass through the funding processes is:
Platforms for funding put their efforts in connecting projects with investors. However, once the relationship between them is created, they do not offer tracking solutions at the height of the responsibilities that are generated.
So, how is the post-investment communication managed?
- Through press releases, offering partial and incomplete information
- By direct contact with each investor, in some cases, which often proves to be time-consuming
Good communication is important in order to:
- Improve investor relations
- Take advantage of the knowledge of investors (Smart Capital)
- Facilitate reinvestment
- Save time in the process of due diligence, reporting, audit, etc.
With a good communication, all stakeholders in the ecosystem win. Success in this field makes investors invest more.
If the investor is satisfied and feels cared about, he/she will return to invest in new rounds of the company or in other rounds of other companies that stand out for good company – investor communication. Betting on good communication with the investor is a very good cover letter for the investor, makes you differentiate your project from others that may be, a priori, more interesting but, at the same time, more opaque.
Current process of communication between companies and investors:
As a startup, you can register on the platform for free, in order to use it as a repository of information organized and ready to be audited and to communicate with your shareholders or potential investors. In addition, you can have a section with private access for your stakeholders on your website, free of charge during the first year of life of your startup.
If you want to know more, send us an email at email@example.com and you will be advised how to take full advantage of the tool.
Here you can see a video about some of the things that you can do with the help of our web platform:
Do you agree with these ideas? Have you already gone through problems in communicating with your investors? Tell us about your experience by leaving a comment here.