Bursts of Color - Nobody Hides Good News
This post made me smile, as it’s cleverly written and oh-too-accurate:
I also saw prolific investor Charles Hudson respond with “Nobody hides good news.” I couldn’t agree more.
And while this concept is important for fundraising, it’s doubly important when communicating with the existing investors who are already on your side. I’m often reminded of this Paul Graham post:
Thank you to those of you who regularly send investor updates. Considering the high volume of investor updates I read, here are my latest benchmarks on what’s most common and helpful:
Who
All investors on the cap table receive this
Use BCC or equivalent
Be aware that your readers receive dozens of these
Why
Keeps your supporters informed and, well, supportive
Forces you to "copter up" on the business
Provides you an opportunity to ask for help
When
Quarterly is typical; monthly is second
Key is to pick a cadence and stick to it
Avoid going dark for long stretches; no news is not good news
If the time comes to discontinue the updates (e.g., you're getting too big or close to IPO or M&A), send a note explaining the change
What
Revenue and 1-2 other metrics with comparison to last update
Cash in bank + burn rate
Headcount update + any key leadership changes
How
150-300 words is usually plenty
1-3 charts or images: a picture's worth 1000 words
When making requests, be specific and make it as easy as possible for others to assist you (e.g., If you want to solicit exec candidates, include a short job description that readers can copy/paste).
