Reinventing Investor Reporting
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Active and engaged investors can greatly improve the ability of your Company to succeed. From providing insights and expertise, through to new business introductions and accelerating your Company with access to additional resources, the positive impact of an engaged investor base can be far-reaching
A Background to Investor Reporting
For private companies, the statutory requirements of investor reporting are quite limited. Often, these statutory requirements are enhanced by specific terms and clauses as set out in your Articles of Association or Investment Agreement. Although remembering to adhere to each of these conditions can be a tricky exercise!
Good reporting should be a balance. Ensuring the investors are informed, engaged, and encouraged to contribute positively. However, CEOs and their teams shouldn't spend a disproportionate amount of time engaging with their investors - after all, they have a business to run!
Whom to report to
We describe Investor reporting, but in reality we mean anyone connected to the board - so this can include the senior management team. Some thought-leaders in the space even advocate reporting to the entire Company - this is not for the faint-hearted! But it certainly has some merits.
At the very least we suggest reporting to all of your investors through Invrep; and some of your senior management team. Although you are very welcome to invite all of your employees to view the materials
When to report
At Reportally you can choose your own rhythm for detailed formal reporting. And many companies choose to just use Status Updates on a regular basis to provide keep their investors engaged and informed
More established business will often have a monthly reporting cycle, focused around board reports and meetings. However, this can be a little cumbersome for faster-moving startups and SMEs. Although the discipline of regular reporting is a good one to get into
What to report
In formal reports, all major aspects of the Company should be covered to some degree. We've set these out in our Detailed Reports, and repeat the main sections as tags in the Status Updates
With Status Updates, we suggest you cover only 1 or 2 key topics that "are of-the-moment". This can be an important sales meeting, a new hire, or product launch. These can be irregular, or you may decide to send a full monthly update. Its up to you!
How to report
We really encourage you to get your investors using the comments section on your Company Timeline. Even if you plan to meet with them at the end of each quarter (or more regularly). Using the comments can help push the debate forward, and encourage the socialisation of each person's perspective and insights.
How do you know it's working?
Faster fundraising - engaged and informed investors you've built a relationship with, are more likely to respond quickly and positively to future funding rounds - as well as recommend your Company to other investors in their network
More introductions - with your Company front-of-mind, your investor base is more likely to "carry your business card" in their heads when they attend to their own business. This can result in them stimulating new and interesting introductions for your Company
Minimal inbound requests - informed investors are less likely to request random updates on an ad-hoc basis