Why Startups Should Have Investor Areas

We’ve been through this many times before. The early days of a Startup are the defining moments – which Enterprise solution is going to be used for internal communications? Which Helpdesk solution? Digital Ocean, AWS or Rackspace? Or maybe even Google Apps on Firebase?

PMing through Jira, Asana or maybe Trello? Once the first MBA’s are hired maybe a few CRMs will be evaluated as well.

The early months of a Startup define its’ future. What works, what doesn’t – a lot of decisions.

And in the middle of it all – the product.

But behind it – also – the stakeholders and investors who either committed in building it, or even funding it. They are now supporting from the backseats and eager to hear news about it.

It’s very common that this doesn’t end well for investors; that a seed or even angel investment will be a complete loss within the next years. And then the shouting in the board room might get louder and louder. That’s a very negative viewpoint, but it happens more often than not.

Don’t be that leader, don’t keep stakeholders in the dark.

You will need them at the next round. You will need them to help you through rough patches. Convertible notes or bridge loans? Those will be negotiated with your investors. So treat them like royalty, not like your step-parents.

And it’s very simple really. Having an investor area helps. It helps you – being on top of your numbers, and it helps stakeholders, to keep themselves updated without having to play detective around your offices or staff.

It keeps rumours down, and it promotes inner-transparency – but most importantly – your investors will see the next round coming much earlier than you calling them.

And then, when that phone call comes – you’ll have more trust and to show for, than if you kept them in the dark all along.