“Oh bollocks. Is it always going to be a world where the good guys lose and the greedy, soulless, and mean win out?” Stephen Fry
How do you choose and work with investors to keep alignment when things don’t go to plan?
💷Choose your investors wisely:
Look for backers who are aligned with your long-term vision. Keep your circle of investors small as possible to concentrate on what matters. ‘We’re looking for investors who can commit X hours a month to helping us grow.’ Discuss their availability as part of the raise.
🏆Set discrete goals with your investors:
A mutual understanding is important for a close and purposeful collaboration. It ensures investors understand your business, roadmap, and ways of working in detail. What outcomes are we aligned on over the next six to twelve months?
🗣Ensure open and honest communication:
Don’t be an ostrich. Stay in touch with regular monthly updates, focusing on latest wins and current challenges in product development, sales, traction, hiring, and financials, as well as any needs they can help meet. Investors like to celebrate successes with their companies.
😁Value your investors:
They’ve invested in you and your venture because they want it to do well, so make them feel needed for more than their money and use their specific expertise. Clearly, bringing investors in is a triumphant moment for any startup. Yet, as with every step of a founder’s journey, there are potential landmines along the way.
So, invest your time in keeping your investors engaged and part of your strategic thinking, use their experience and don’t just see them as providers of funding.
Great insights Ian. The idea that the Corbin and King’s empire collapsed at the whim of an investor, is a terrifying thought!