Congratulations! You've just finished your capital raising round, potentially even earlier than expected. But what comes next? Many companies make the critical mistake of going silent after completing a capital raise, only to scramble for funds again later. To avoid this pitfall and maintain momentum, follow these strategies to keep your investors engaged and your business ready for future opportunities.
1. Stay Ready: Keep Your Deal Room Updated
After completing a capital raise, it's crucial to stay prepared for future opportunities. Keep your deal room updated with new projects, milestones, and any changes in your business. This ensures that when the next opportunity arises, you’re ready to seize it.
2. Always Be Raising: Continuous Investor Engagement
To avoid the "raise-and-silent" trap, always be in a mindset of raising capital. This doesn't mean you are constantly asking for money but rather continually engaging with your investors and potential investors.
Investor Relations: Maintain regular communication with your investors. Aim to provide updates at least once a month. These updates don't need to be detailed financial breakdowns but can include:
New board members
Announcements about the capital raise
Grants or awards received
Media coverage
Performance metrics
Challenges faced and potential solutions
Product updates or milestones
Investor Engagement: Foster deeper relationships with your investors. Offer opportunities for them to engage with your company more directly, whether through Q&A sessions, product demonstrations, or personal meetings. Remember, raising capital is more than a transaction; it's building a long-term relationship.
3. Discipline: Regular Investor Communication
Incorporate discipline into your routine by dedicating time to investor communication. Aim to have a conversation with a potential investor or existing shareholder at least once a day. This helps you:
Understand future capital raising potential
Develop your capital strategy
Gain insights into board development
Secure commercial introductions
Learn lessons from other investor companies
Find trusted service providers
Understand investors’ evolving investment theses
Why Continuous Engagement Matters
By maintaining continuous engagement and regular communication, you build trust and keep your investors informed about your progress and challenges. This proactive approach not only prepares you for future capital raising but also leverages your investors' network and knowledge to overcome obstacles and seize new opportunities.
Key Takeaways
Stay Ready: Keep your deal room updated with new projects and milestones.
Always Be Raising: Engage with investors regularly through updates and direct interactions.
Discipline: Dedicate time daily to communicate with investors and incorporate their feedback into your strategy.
By following these strategies, you can maintain the momentum from your recent capital raise and position your company for continued success.
