How to get more from investors:

Most investors are willing to help good entrepreneurs in any way they can. The problem is that there is often a disconnect between what founders think investors should be doing for them, and vice versa as well! This means that if founders don't ask for help, then the investor isn't going to offer it... until the next fundraising round anyway!

All founders want to get more from investors, but most founders don’t receive the optimal output from their investor

Here are some of our thoughts:

Ask and you shall receive

• Investors & founders are aligned: Investors know that the best way to get more out of an investment is to assist the founders and their companies to become successful!
• Further, in the case of abundant capital, investors today are looking at ways to prove their ‘founder-friendliness’ to attract other ideas/ founders! Any assistance by an investor which provides them some form of validation will always be forthcoming!
• Other than the potential financial upside, investing in startups at the early stage is usually fun: It’s creative, challenging, and constantly changing. Most early-stage investors/ angels invest to have a direct connection to innovation – Smart founders know how to tap this

Consistent updates which keep the investors engaged in your story:

• Founders often tend to forget that investors view their investment as an unfolding story. It is imperative for founders to share their updates in a manner that keeps the investors hooked on their narrative. Founders underestimate how easy it is for investors to lose interest in a company
• An update that follows a consistent format with metrics tracked over a period of time and broad short-term strategic targets is a good way to ensure that investors understand your perspective. A desirable format may look like
  • Highlights / Lowlights
  • Performance / KPIs
  • Strategic goal 1 for the next quarter
  • Strategic topic 2 for the next quarter
  • Investor Asks

Prepare a common update but personalise asks.

• Investors assess what entrepreneurs are good at, and they know what founders are uncomfortable with. It’s often a value-add if you can get an investor to help you get better at something you’re not good at — that’s how many entrepreneurs work. If you tap into that, it’s a huge win-win situation.
• Similarly, founders should assess how best to get the most from each investor. Ask for help with specific tasks- customer introductions, product feedback, hiring talent for a specific role, etc.
• Set investor meetings with an agenda and share information in advance, this allows investors the time to collect their thoughts. Also, remind investors of previously unfulfilled asks! – If an investor can question your unfulfilled targets, so must you!

Existing investors are the best soundboards for planning a new round

• While preparing for the next round, understand from existing investors what attracted them to you in the first place. Some investors undertake their research and develop their own calculations of the TAM and potential path the company may take to grow. Leverage this and build your next deck. You are entitled to ask for an investor memo!
• Understand frankly which investors will back you in the next round:
  • A clear signal of low confidence is investors putting forth their cash only once you have onboarded a new investor – This is a major risk. Understand their apprehensions and address them in your pitch as these are likely to pop into the thought process of incoming investors as well
  • An underrated way for founders to get honest feedback from their investors is to ask this question: ‘Will you independently back me with more capital today?’ The answer to this question will usually shine a light on all things the founders must prepare for before their next fundraise