7 Little Things That Make a Big Difference to Investor Relations

Nine out of 10 new startups fail — a shocking statistic if you’re embarking on a new business venture [1]. Poor organization, bad business decisions, and a lack of market demand are just some of the reasons why your startup might crash and burn. But what if investor relations are to blame? The truth is, maintaining good relations with investors will help you secure funding and increase your chances of business success. Here are seven little things that make a big difference to your investor relationships.

1. It’s All About Communication

Communication is the foundation of any business relationship, so don’t be a stranger and maintain contact with your investors throughout the startup process, from fundraising through to launch. Pick up the phone, send an email, reach out via live chat — keep your investors in the loop about what’s going on.

2. Send Out Email Newsletters

Email newsletters are an awesome way to communicate with investors. You can update potential partners about seeding, cash flow, and expenditure, for example.

“You can send specific updates to current investors detailing your progress toward reaching milestones and ongoing projects within the company,” says Inc.com [2].

3. Don’t Communicate on Social Media

Investors don’t like to converse with startups on social media. Only 22 percent of investors actually use this communication platform, while just one-third said websites like Facebook and Twitter are useful for investment-related communication [3]. Phone calls and email newsletters are a much better choice if you want to improve investor relations.

4. Send Out Reports

Your ongoing progress will influence an investor’s future funding decisions. This is why it’s a good idea to send investors regular reports with valuable analytics like income and revenue, as well as key performance indicators in your niche. Using a tool like Rundit makes investor reporting easy and you can track real-time metrics that provide you with deep insights into your financials.

5. Socialize With Your Investors

Inviting investors to network or social events might sound strange, but it will foster better communication. The next time you attend an expo or industry event, send out an email invitation. You will be able to communicate with investors in an informal setting, and you could increase your chances of funding.

6. Open Up to Your Investors

Don’t be cagey with investors. Sure, you might want to keep it strictly professional and just talk about funding, but investors will want to know more about you and your organization — who influences you, what motivates you, what gets you out of bed. Opening up about your goals, objectives, and motivations will facilitate better relationships with your partners.

7. Improve Your Pitch Decks

Your pitch decks need to educate, inspire, and entertain investors. Instead of boring sales pitches, incorporate graphics, videos, and statistics into your pitch decks for better engagement.

“If you want to receive a check made out to your startup, then you need to hook their attention from the get-go,” says Business2Community [4]. “Otherwise, they’ll eventually end up funding somebody else!”

The seven little things above could revolutionize your relationship with investors. Making some small changes to your startup model — improving communication, tracking metrics, improving pitch decks, etc. — could increase funding and grow your new business.

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