How can you leverage your investors' expertise and experience to improve your startup?

Leveraging the most of the knowledge and experience of your investors is essential to your startup's success. Giving them regular updates on your progress and strategic decisions keeps them interested and informed. Engaging them in significant decision-making procedures offers access to a variety of perspectives. Leveraging their networks provides access to talent, partners, and clients; additionally, their sector knowledge provides crucial market insights. Seek guidance from mentors and think about setting up an advisory group to provide organized feedback. Effective strategy refinement requires learning from mistakes and success?as well as being attentive to criticisms. Developing such reliable alliances promotes long-term partnerships.

Investors' take is shaped by diverse experiences with numerous startups and offers a unique vantage point that differs from that of an entrepreneur. For VC-backed startups, or those aspiring to secure such backing, remember that your initial 'customers' include your angel and VC investors, whose short- and long-term objectives for your venture might not align with your own. It's crucial to engage in conversations with these key stakeholders to gain a deeper understanding of their views on market potential and the milestones your startup must achieve for success.

I see only 1/20 startups doing it and later cribbing that VCs don't reply. Also, once you are backed - not only it's important to share report on your progress but also add a note on "what worked" and "what is not working" which can include non tangible aspects like: hiring, culture, leadership, competition, opportunities you wish to tap as all of these aspects creates differentiation in the market and can help you in gaining confidence with your investor.

Investors possess a unique mindset and skills, cultivated from working with a vast array of startups, entrepreneurs, mentors, scientists, professionals, and fellow investors. They continuously sift through their contacts to identify the most effective collaborators. As an entrepreneur, you are encouraged to tap into your investors' networks. It's beneficial to establish a routine of regular discussions with your investors, where you can openly discuss current challenges and seek advice and support through candid conversations and brainstorming sessions. Such interactions can unveil opportunities you might not have even dreamed of.

Acknowledging the role of investors as partners is crucial. They invest not just capital but also their time, expertise and reputation to support your vision. The best gratitude towards them is about actively listening to their advice and thoughtfully implementing the insights you find most applicable. While it's not necessary to act on every piece of advice, avoiding confrontation and appreciating their input is key. Remember, the entrepreneur ultimately leads the company, but investors appreciate seeing their guidance considered and, when relevant, applied. This approach doesn't just honor their contribution; it also encourages their continued support and investment, recognizing the value they bring beyond mere financial backing.

I admire founders who have an acute understanding of the chinks in their proverbial armor, and a keen sense of who to approach to fill those gaps. Investors, depending on their background and standing (strategic vs. financial, public vs. private, stage-specific vs. life-cycle) bring a very varied set of value adds (important to know who brings what to the table). As for the menu of benefits one can draw from an investor base, here is a list - Investor introductions Expert intros Advise on product, price, GTM Support with geo expansion Financial planning ESG advisory Compliance advisory It's not a one-way street and engagement is critical. Involve them in your thinking, appreciate their contributions and treat them as partners in growth!