Mastering Investor Communications: Essential Tips

In partnership with

SDS 037: African Startups: Finding the Right Investor Fit

Hey! thank you for reading issue 037 of Startup Definition Sunday (SDS).

SDS is the only newsletter that is redefining support for Africa's emerging founders. Every other Sunday, we cut through the fundraising and ecosystem noise to bring actionable insights to 1K+ emerging founders.

(P.S. I'll never sell your information, ever)

Thanks to the folks at Betterment for sponsoring today’s issue:

If you’d like to sponsor future issues of SDS, here’s a simple way to do it.

As an early-stage investor, I spend a lot of time exchanging emails with founders.

In today's global landscape, emails have become the most reliable channel for founders communicating with investors, considering diverse locations.

From pitching to closing fundraising rounds, these conversations increasingly happen over email. However, I have noticed that many emerging founders overlook three crucial areas when communicating with investors.

In this edition, I will provide insights and tips to help you optimize your investor communication strategy.

Communicating with Interested Investors When There's No Allocation: One common mistake I've observed is founders neglecting to communicate effectively with investors who express interest but cannot be accommodated due to limited allocation. Despite the unfortunate circumstance, it is essential not to overlook the support and interest shown by these individuals. By acknowledging their interest and honestly explaining the situation, you can maintain a positive relationship. Consider creating a dedicated email list for such investors to regularly update them on your progress, milestones, and significant developments. By keeping them engaged, you ensure they remain connected to your journey and may even become advocates or referral sources for future funding opportunities.

Following Up with Investors After Not Hearing Back: Investors receive numerous pitches and inquiries. As a founder, it can be disheartening when you don't hear back from an investor after reaching out or speaking with them. Instead of being discouraged, adopt a proactive approach by sending a follow-up email after a reasonable period. Express your continued interest and provide any additional relevant information. This demonstrates your tenacity and commitment, potentially prompting the investor to revisit your proposal. Remember, fundraising is a one-to-many strategy. After one or two follow-ups, it's important to move on from the investor until you hear back and focus your time on reaching out to other, more responsive investors.

Personalized Investor Updates: While founders often focus on formal pitch decks and investor presentations, there is a great opportunity to connect with investors on a more personal level. Consider sending periodic emails specifically to your existing investors, sharing behind-the-scenes insights, lessons learned, and your vision for the future. This personal touch fosters camaraderie and investment in your success. By making your investors feel like valued partners, you strengthen the bond and increase the likelihood of their continued support. If you haven't sent out an investor update before, I recommend reading this article to get started.

Now, let me share my two pesewas:

Effective communication is a two-way street. Managing your communication strategy can enhance your investor relationships, which are critical for the success of your company.

If you or someone you know should be receiving 2024 issues in their inbox, consider joining SDS so you don't miss exclusive sections in future editions.

If you only read one thing this week, read this...

The Next Chpter by Tesh Mbaabu (Marketforce co-founder)  

Why is it worth your time? This article serves as a great proof point for the value of founders sharing their writing. It has received tremendous engagement on social media, with 32K shares on Twitter and over 400 reactions on LinkedIn. All from a founder’s own writing.

That's all for today. As always, thank you for being an engaged reader.

I'll catch up with you in two weeks with more actionable insights.

Jasiel

Find me on X, LinkedIn or Book a 1:1 Call

Whenever you are ready, there are 3 ways I can help you:

1. Review your deck for investment: It takes less than 5 minutes to complete.

2. Improve your investor updates using these two templates.

3. Promote your brand to 1000+ early-stage and aspiring founders by sponsoring this newsletter.

Make Your Money a Multitasker.

With Betterment's expert-built ETF portfolios, you’re automatically diversified across thousands of stocks and bonds at once. These expert-built portfolios are designed to help reduce risk, regardless of what’s happening in the market.

Learn more.