How to Cultivate Lasting Relationships with Your Investors


Business is much about relationships – the ones with your clients, with your team members, with the partners truly matter, but especially interesting and important are the relationships with the investors. Attracting the right investors to a startup is widely discussed topic among entrepreneurs. Entrepreneurs, who are persuasive pitchers, exclusive networkers and skilled salespeople, have a bigger chance to get the attention of the investors. But are they paying enough attention on turning these connections into lasting relationships? Once the connection is made, the job is not half way done. Actually it is just starting!

How to strengthen the relations with the investors is one of the topics that interest most entrepreneurs yet it is rarely considerably discussed. There are many things that the entrepreneurs do wrong after they “get the cash” and neglecting the need to keep the conversation with the investors alive after the funding is secured is one of the biggest mistakes they make. This is why here we will talk about how you can build a rock-solid relationship with your startup investors effortlessly.

Put the cards on the table from the very beginning. Great relationships are built easily when the people share not only common goal, but also a common vision. From the very beginning, make your position, values and mission clear in order to be sure that you and the investors are on the same page.

Show appreciation. Investors bring to the table much more than their money. They will share with you their expertise gained through the years, their incredibly rich networks and their much valued advice and support. As you are aware of this fact, make it clear that you appreciate everything and that you value all the help that you get from them. The investors are in not only with their money, but also many tend to emotionally engage with the business and get involved in the business in deeper level. Appreciation is a great way to show that you value the help and that you value the whole relationship in general.

Listen and demand to be heard. Effective communication is extremely important and stands in the core of all stable relationships. Be open to suggestions and take the advices of your investors seriously. In the end, you share the same goal – growing your business is what’s on stake.

But strong relationships are also built on trust and respect. It is important that the investors also listen to what you have to say. Compromises sometimes should be made but in general through effective communication and active listening better results will be achieved.

Keep the information flow. Even though both sides – and the entrepreneurs, and the investors – are working under the pressure of time, it is always a good idea to maintain constant communication flow. Find the time to share all important updates with your investor in the best possible way – most likely email is the most adequate option. Not only the good news and regular updates matter, so make sure that you share with the investors and the bad ones. It is important to give all necessary information to your investors promptly so they can have enough time to consider the matter and to align their decisions with the current situation.

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