Catégorie
1. Structure & Governance
Sous-catégorie
1.3. Funding
Stade
Seed
What is at stake?
How to establish a positive and fruitful relationship with investors?
Why is it important?
The role of investors goes beyond providing funds to the startup; they are stakeholders with whom the founders will collaborate and work closely throughout the entrepreneurial journey.
While investors do have a say in the decisions made for the startup's growth, they also bring their expertise and help entrepreneurs realize their vision. Therefore, it is crucial that this vision is aligned and shared on both sides, and that the relationship is based on trust, transparency, and mutual understanding.
3 actions to implement right now
1️⃣ Build the relationship with investors
- Question the funds to ensure that the founders' vision aligns with that of the investors.
- Discuss the expectations of each party to establish a foundation for healthy communication (see: Fundraising and ESG Audit).
- Decide which investors will be part of the Board (see: Formation of the Board and Executive committee).
2️⃣ Create an ESG reporting and formalize the role of the board
- Define the format and frequency of reporting and the relevant KPIs to be presented.
- Consider ESG criteria in the board's agenda.
- Conduct an ESG or impact reporting.
- As the company grows, ensure that the board still has the necessary skills to monitor ESG. Otherwise, it is possible to strengthen this area through a consultant or board observer with strong expertise in the subject (see: Formation of the Board and Executive Committee)
3️⃣ Regularly communicate with investors
⇒ Do not wait for board meetings to keep investors informed about important matters
- Set up relevant communication channels to keep investors informed (share successes, formal emails, individual updates, etc.).
- Include investors in the startup's events.
📚 Further Reading
‣
📖 The Galion - Board Guide
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🔍 The example of Pumpkin: the story behind the acquisition and closure that took place within five years (Maddyness)
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