While every individual investor and VC group are different, something they all have in common is wanting to know they have made good investment decisions. Obviously, the number one way to determine return on investment is seeing revenue growth. This is something that takes time, so how do you show your investors progress and momentum prior to hitting impressive numbers? In my experience, having worked with over 70 emerging technology and cybersecurity companies, you can do this by regularly sharing updates about company wins.
Now, this does not mean every time a new team member is hired or you land another client you should be pinging your investors about it. Investor communications should be curated to include significant news or milestones. Examples of appropriate updates include major award wins (such as SINET 16 or SC Magazine Awards), inclusion in analyst reports or industry-definitions (such as Gartner’s Magic Quadrant or Forrester’s Wave), landing a significant speaking opportunity (such as RSA Conference, Black Hat or SXSW) or a signed deal with a new partner or integration that punches above your own weight class. Of course, there are other big wins worth sharing with those who have placed their faith, and bank accounts, behind your company so use your best discretion when selecting what is worthy of another email in their inboxes. When in doubt, ask your PR team for their opinion.
A bonus tip would be to include a link to a formal press release announcing the win and links to your company’s social media posts about it in your notification email. Investors and VCs like to demonstrate their good choices to the world too, so making it easy for them to share those links will be mutually beneficial.