The team at Spin Ideas asked me to share some tips on how to build a successful relationship with investors. So here are my two cents.
In the last two months, we’ve been through a roller coaster of life-changing events and tough decisions we had to make. The next months will not be much different, but there is something we all have acquired. The experience of having dealt with a global historic event. We have been stunned, frightened, we had to adapt, protect, pivot, test, and then just do. Perhaps you have been surprised by your ability to do all these things in less than eight weeks. I know I was. It did not take months or years. It had to be now.
This is the exact description of the startups’ world. An environment where fierce battles take place every day, no matter the state of the economy or the world in general. One of those battles takes place without any doubt when it comes to funding. And that is the case because of the limited access the broad range of startups have to venture capital (VC) or angel investors [excluding local governments and European funding schemes]. It takes years to build relationships even with the help of accelerators or hubs who are present in most European countries and around the globe.
Investor relations in the startup world
The concept of investor relations is not a new one, but very few startups have organised teams in charge of the process. For the majority of the cases, founders are responsible and the CEO is in charge of the process.
When having a closer look into what investor relations entail, we see that, with the exception of corporations and publicly traded companies, investor relations should be managed by the person or team responsible for public relations and/or communications. The role involves communication using the web, social media, media or shareholders briefings, events, involving crisis management or social responsibility capabilities to name a few.
If you are a startup preparing for a funding round and want to find out more, you can find my tips on Spin Ideas Blog.
Until next time, stay safe and think positive.