Aidi — Why Founders Should Maintain Strong Relationships With Their Investors And How To Do It Right

Securing investment is just the beginning of your journey, as a startup founder. While it is a major landmark in the growth of your startup, the real journey begins after the deal is closed. Beyond the initial pitch presentations and funding rounds, the foundation of a successful startup lies in maintaining strong relationships with your investors. Many founders overlook this, but relationships with investors can positively impact the growth of your startup, from strategic decisions to future funding opportunities.

Investors bring much more to the table than just capital. They also offer valuable industry knowledge, experience, guidance, and connections that can help speed up your company’s growth. Unfortunately, some founders see investors only as “money bags” who are only interested in the positive reports and nothing else. If you also think this way, you are absolutely WRONG! Investors don’t just want to know about the positive side of your business, they also want to know where you may be having challenges so they can offer support. 

If investors have placed their trust in your business idea, they deserve to be kept in the loop at every stage of your business’ growth. When you build trust with investors, they are more likely to support you through challenging times, either by offering advice or even providing additional funding. Investors also have great networks, and if have a strong relationship with them, they can easily introduce you to other potential investors, increasing your chances of securing ongoing support as your startup grows. 

No investor wants to take over your company or steal your business ideas. They have invested because they believe in what you’re building and want to see it succeed. So if your investors check in regularly for updates, they are not doing too much– they just want to be sure the money they invested will yield good returns. By the way, if your investors have to run after you for regular reports on your business, that is a red flag, and it won't be long before they start losing trust in you and your business.

Here are some ways you can build and maintain strong relationships with your investors:

1. Communicate Regularly: Keep your investors in the loop of your startup’s progress, challenges, and successes with regular updates through emails, quarterly reports, or even informal chat platforms. This shows that you value their input as much as their money, and they will be willing to help in whatever way they can.
2. Foster a Partnership Mentality: Make your investors feel like partners in your startup’s journey, and not just investors. Remember that they are interested in the success of your startup as much as you are. By treating them as partners, you’re creating room for collaborative efforts in some strategic decision-making.
3. Deliver as Promised: Investors committed to you based on the milestones you promised to achieve with their funding. So, consistently meeting or coming close to meeting your goals will make them see you as reliable (talk and do) and will strengthen their trust in you. 
4. Aligned on Starup’s Long-Term Vision: Make sure you and your investors are aligned on your startup’s long-term goals and vision. Oftentimes, founders and investors have conflicts because of misalignment in long-term goals and strategies. It is important to have regular discussions about your startup’s future goals and make sure you and your investors are on the same page.
5. Involvement in Major Events: Always invite your investors to major events your startup is hosting. Even if they’re too busy to attend, it’s a courtesy to extend an invitation to show that you value their presence and consider them an integral part of your journey.

Building any relationship is a two-way street, which requires effort, sincerity, and intentionality. Maintaining strong relationships with your investors is not just about securing funds, but about building partnerships, prioritizing transparency, and fostering mutual respect, which creates a supportive environment that benefits you and your investors. Remember, investors are not just financial supporters; they are partners who can help you turn your vision into reality.