Maintaining relationships with your investors
What happens after the fundraising process?
Getting an investment is a fantastic moment for a growing company and the result of months of work. However, the founders can’t stop there. It’s true that capital injection helps to solve some of the startup problems, but at the same time it presents the team with new challenges.
Finding funds means bringing new members on board, both private and investment firms. As a result, the startup team loses a certain degree of autonomy, and the need constantly keep investors who are now involved in the development of the company up to date arises.
In short, closing a successful investment round is not an finishing line, but a new starting point.
BizPlace has been working in the investment industry for years alongside successful startups: our team has supported hundreds of startups and SMEs and participated in dozens of investment operations. According to our experience in the field, the founders also benefit from financial support in the phase after the financing round.
Why is it important to keep investors up to date?
After a round of investment, it is clear that new partners want to receive news and information about what is happening within the company. The responsibility of the founder, therefore, is to effectively disclose all relevant data.
Communicating clearly and consistently with your investors is a key aspect of ensuring their involvement in the project over time. With a view to the future, transparent communication can prepare them for potential new capital increases.
Unfortunately, for a startup this new responsibility can be a problem. It is a complex and delicate business that requires time, money and vertical expertise in the Venture Capital investment market and finance that may not be present within the team.
What is Investor Reporting?
An investor reporting service is an activity of periodic monitoring of the main KPIs of startups, for the benefit of both investors present in cap tables and potential investors who intend to invest at a later date.
The service is aimed at any startup or SME that has received funds from accelerators, business angels, crowdfunding equity platforms, venture capital funds, or private equity funds.
How does it work?
Processing and presenting all the information and metrics needed by investors can be challenging for founders. By working with a dedicated analyst, the process becomes much easier.
An analyst dedicated to the project analyses the business and identifies the key metrics to monitor and summarises them. With this data, they prepare the periodic report to be sent to investors and express an independent opinion on the performance of the business.
What are the benefits for a startup of entrusting reporting to an advisor?
First, the significant savings in time and resources allows the startup to focus on growing its business, the founder’s core business that can be overlooked during the fundraising process.
Moreover, delegating the task of reporting to a third and independent subject increases its reliability, especially when it is a situation that has been working for years in the Italian VC world.
Within the company, it is useful first and foremost to have a reliable method of analysis: determining when, which and to what extent tracing one’s own results allows founders to manage the main activity of their company more efficiently.
Investor Reporting: The BizPlace service
In the light of our experience, we are able to offer the Investor Reporting service to continue to support start-ups in the post-investment phase.
To find out more, leave your email address or go to the page dedicated to the service.