How can you build trust with investors during a challenging period?

Building investor trust is not easy. What we found out that is working, and we then applied it to our clients, is giving them access to real-time reports like analytics. We, as a digital business, care a lot about our user rates, bounce rates, engagement, etc. Therefore, our data analytics team created a looker data studio (or even GA4 reports in the GA4 interface) that tracks and gives performance insights. We have nothing to hide, so we propose to our clients and investors to give them viewers access to the data we see on a daily basis. This action helped us improve our investor relationships as we added transparency to the equation. They loved it, and we receive less ''insecure'' emails.

Building trust with investors during challenges requires transparency, honesty, and proactive communication. Provide regular updates on the situation, detailing challenges and mitigation strategies. Be candid about setbacks, showcasing a clear plan for recovery. Demonstrate adaptability and resilience, showing your commitment to overcoming obstacles. Address concerns openly and involve them in decision-making processes, fostering a sense of partnership. Consistent, transparent communication in difficult times builds investor confidence in your ability to navigate challenges effectively.

Build yourself an investor report temple. Fill that with info and send it out every two or three months. It should include: - Some words from you - Revenue metrics - Cost metrics - Growth metrics - Challenges - Suggested solutions Be open, honest, and concise.

Being transparent and candid with your investors. Let them know what is going on and why. Then follow it up with what you are doing to capitalize, mitigate, or pivot.

To build trust with investors during challenging periods, maintain transparent communication by sharing both positive and negative news promptly and honestly, ensuring credibility. Regular updates provide detailed insights into steps taken to address any critical situation and future strategies, and provide realistic projections. Demonstrate accountability by acknowledging mistakes, learning from them, and showing tangible improvements. Strengthen relationships through personal interactions, understanding their concerns, and aligning interests. Lastly, showcase resilience by highlighting past successes in overcoming obstacles, reinforcing the commitment to the venture's long-term success. It takes 3vs.7 engagements = physical/virtual trust.

Many startups grapple with setting overly ambitious targets when pitching to investors, which can ultimately backfire. This unrealistic approach can lead to accountability issues and strain relationships with investors. It's essential to maintain a high degree of realism in your projections; it's often wiser to exceed expectations than to fall short.

I have never been in a situation where if I asked for feedback, I did not receive it. Quite the opposite. I find that most people are willing to give you their time for free if you only ask for it. Ask, and you shall receive. Often, investors have to have their own companies and don't understand your position. But they do often see the perspective from a multitude of companies. Take advantage of that.

Nothing resonated more than some proper wins. Always highlight these and feed them to your investors to keep their positive attitude towards you. That does not mean you should shy away from delivering bad new also. But a mix and match is vital.

Preparation is key. When they ask their questions, always have a well-formulated answer at hand. Preferrable an answer that can be supported by numbers. That builds trust and confidence.

My four tips to build investor trust: 1. Be open and encourage regular conversation / Q&A 2. Only make promises you are certain you can deliver 3. Be forthright where your confidence sits: the things you believe your team will hit and the areas where you have concern 4. Invite your investors to assist The first three serve to set realistic expectations and build confidence in your teams ability to successfully navigate the journey. The last brings investors "into the fold" and may well provide great insight or extra hands just when you need it most.