Principles to help startups build and maintain support from investors

Investors not only provide capital, but also become long-term companions to startups. However, to receive enthusiastic support from investors, startups need to have a clear, transparent and sincere communication strategy.

Principles to help startups build and maintain support from investors

Investors not only provide capital, but also become long-term companions to startups. However, to receive enthusiastic support from investors, startups need to have a clear, transparent and sincere communication strategy.

Here are some principles to help startups build and maintain support from investors, instead of just receiving capital once and then completely losing touch.

First, build a relationship of trust and transparency.

The relationship between investors and startups is not just a financial transaction, but also a strategic relationship where trust is a key factor. To ensure that trust is not shaken, startups need to build relationships based on transparency and honesty. On a monthly basis, startups should proactively provide information on their financial situation, difficulties in the development process, as well as opportunities and challenges ahead.

Timely communication of financial metrics, project progress and short-term goals will help investors feel secure and confident in the founding team's leadership, encourage long-term commitment and be willing to provide additional support in the future.

Second, share long-term development plans.

One of the factors that investors expect is the sustainable development of the start-up. If they only look at short-term profits, they may not see the real value of the investment deal. Therefore, start-ups need to share a long-term, feasible development strategy so that investors can see the growth potential of the business in the future.

Startups can provide market analysis reports, product expansion plans, or new customer outreach strategies. This not only builds trust, but also encourages investors to continue accompanying the startup in subsequent funding rounds.

Third, tap into your investor network and relationships.

Investors not only provide capital, but also own a large network of connections in the industry, from business partners, suppliers, potential customers to experts. Start-ups can ask investors to introduce and connect with these partners to speed up the development process. Thus, start-ups will increase cooperation opportunities and demonstrate their initiative and ability to make the most of the resources provided by investors.

Finally, stay committed to results and progress.

One of the most important factors to maintain investor support is the commitment to results. Investors always want to see real results from what they have invested. Therefore, startups need to clarify revenue, profit, number of customers, etc. targets and commit to completing them on schedule. In case of failure, startups need to be proactive in explaining the reasons and proposing solutions. Only by maintaining a clear, transparent attitude, always looking for ways to create value for both sides, can startups build a sincere, strong cooperative relationship with investors, creating a premise to overcome challenges and develop strongly in the future.

Source: https://baodautu.vn/nguyen-tac-giup-start-up-xay-dung-va-duy-tri-su-ho-tro-tu-cac-nha-dau-tu-d250699.html