Tue, 12 October 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After investing in a startup, it’s important for the angel investor to determine their role with the startup. There are several roles to consider: The investor can take an advisory board seat and provide coaching to the startup on an informal basis. The investor can take a board seat and help guide the founders through a formal board seat with regularly scheduled meetings and reports. The investor could forego the board seat, but stay in touch with the founders to provide support and advice. It’s important to define with the founders the information rights including what content and how often it should be delivered. The frequency of updates should match the needs of the company. When the company is in a steady-state mode, this is often quarterly. If the company is in crisis mode such as running out of cash, then this should move to weekly. Regardless of the state of the startup, the investor should check in at least once per quarter with a call to the founder. Finally, the investor should track the investment in their portfolio and maintain the most recent valuations and ownership levels. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please subscribe, share, and leave a review. Music courtesy of Bensound |