What's the best way to show your startup's progress to investors?

Show the investor how and when you are going to give them their money back. It sounds simple, but is rarely done in pitch decks. They mostly focus on all the usual stuff, except what is most important for the investor. Note to all - saying that exit is at IPO or trade sale is not good enough. Unimpressed with that stock answer. It is code for saying you won't get your money back for a long time and we have no plans to be profitable enough to pay dividends.

When it comes to seeking out investors for your startup, its important to choose wisely. The right investors can provide the capital, connections, and mentorship you need to take your business to the next level. The wrong investors can drain your resources and leave you feeling frustrated.

This is my favourite topic, something I often talk to with founders. In my opinion, investor relations / raising money is a process. Decks alone wouldn’t bring money, especially in the sceptic world of funding winter. Real win lies in a structured approach using technology, transparency & a great onboarding. Imagine a pitch deck with a regular newsletter, an investor relations corner with access to automated MIS reports and finally investor open houses to address queries. Especially if you are a tech startup, this is a must. Word of caution: if it is not well structured & you are not prepared, this can backfire ??

Development sales, trials, customer retention, testimonials, all precede traction in revenue. Size of market and unmet need surveys from early adopters

Having launched two very successful businesses and supported several other startups as advisory board member, I can share that to effectively demonstrate startup progress to investors, you must prioritize presenting concise, data-driven updates focused on key metrics, such as user acquisition, revenue, and churn rate. Utilize visuals to enhance the clarity of data and articulate how previous investments have propelled growth and facilitated milestone achievements. Combine quantitative data with qualitative insights and ensure communication is clear and straightforward. Maintain transparency and always link your updates to the overarching vision and upcoming strategic initiatives, reinforcing your forward momentum and potential. Good luck!

Do not confuse activity with results . . . for each stage of your progression the activities involved should lead to some type/s of result/s. Be very clear in your plan the why, what, & how of the stage involved and what should be the result of all of this. . . be prepared to explain what has transpired, if the result of this activity met the plan and if not, why not, and what was learned as a result and how this might influence the next phase of work, experimentation, etc.

Work diligently to show PoC of your technology TOGETHER with a lasting market need for your product/service. Plan your critical milestones to deliver (i) de-risking of technology/market fit and by so (ii) reaching your next company's inflection point in value. Build a strong BoD with engaged NEDs. They will give you an important source of unbiased feedback and perspective between the founders/management and the investors. Shoot for the moon, plan to cross the street. That is, dreams keep you going and get places you did not think possible; realistic plans keep you moving forward towards your dreams! Good luck

Strategic and professional communication with investors involves defining and achieving clear milestones. These milestones should be specific, measurable, and realistic, offering a tangible demonstration of your startup's growth and potential. Whether it's product development, customer acquisition, revenue generation, or user engagement, each milestone should align with your overall strategy and vision. By emphasizing how these achievements validate your assumptions and hypotheses, you provide investors with a transparent view of your progress and strategic direction. This approach positions your startup as a professional, experienced partner committed to achieving its goals.

Set specific, measurable, and realistic milestones that showcase your startup's growth and potential. Align these milestones with your overall strategy and vision.

It is crucial to align expectations with the board and create a scoreboard that is easily understood by everyone. Instead of solely focusing on the end result, it is important to set targets that the team can realistically achieve. By managing and measuring the team's efforts to reach milestones, success can be attained. From my experience, this approach can ultimately lead to the desired results.

Founders are often running hard and fast, and can't always dedicate the time to creating massive presentations for investors. Startups should look to implement the most basic BI dashboard (even on Looker via Google Suite) to have a easy way to pull information. As time goes on, more advanced data can be gathered and shared. In addition, consistent communication of the metrics should be a priority, but it is up to the founders to set the pace and method in which information is disseminated. Loom videos every couple of weeks can prove to be an easy way to talk to investors consistently or create a feed off of the product management board, to communicate milestones.

As much as founders may like to speak in terms of emotions and hype, the truth is that investors need to see data, charts, visuals, and graphs. In the end, you have to be able to quantify your success and your progress. It's best to start with some clear milestones or metrics that show where you started. Then show how you've progressed overtime in clear terms. It may be tempting to exaggerate or overindulge certain numbers. However, the best thing to do is to be honest about any wins and pitfalls and show your plans for further progress. When in doubt, go back to measurable data.

Here are a couple of data showcase measurements that will impress your investors: - How many users do you have on your platform? - Turnover rate/Revenue - How many preorders have you got? - Average expense on your platform - Cashflow balance (especially for SaaS businesses) - Financial predictions in correlation to users - How much traction do you have on the app/platform? - What are the conversion rates? - How many clients have you contacted/generated in what period of time? That should do the trick ;)

Investors value clear, graphic data that offers an engaging story. Take Airbnb's Series A pitch, which employed charts and graphs to demonstrate user growth, market potential, and financial projections. This visual approach made their statistics more understandable and compelling. By combining data and images, Airbnb effectively demonstrated its progress and future possibilities, aligning investor expectations with reality. Use charts, graphs, and tables to not only provide numbers, but also to describe your startup's progress and effect.

Don't be afraid to share your challenges and how you overcome them. Particularly with prospective investors, they know it will never be a smooth line up and to the right -- they want to understand how your smarts, grit and operational skills can help you to overcome the even bigger challenges that lie ahead.

Showcasing progress isn't merely a victory lap. It's a chance to recognize what you've learned and the obstacles you've encountered. Investors value your ability to grow from feedback, experiments, and blunders. They want to witness your adaptability in refining your product, market strategy, and team. Being forthright about challenges and how you're tackling them demonstrates resilience, resourcefulness, and a clear view of reality to investors.

In early startup stages, relationships with often single or few angel investors are fluid and undefined. As priorities shift rapidly, setting concrete KPIs becomes challenging. It's essential to have structured, semi-formal reporting, with meeting frequencies adjusted to the investor's experience. While seasoned investors might prefer infrequent updates, newcomers may require regular check-ins. Overloading novice investors with complex dashboards should be avoided.

Entrepreneurs must approach goal setting with practicality, ensuring plans are well-executed. View setbacks as valuable learning experiences, guiding your journey through experimentation. If initial plans falter due to mistakes, adaptability becomes key. Continuous navigation in product development provides user insights. How you overcome challenges showcases resourcefulness, underlining your determination to grow. Flexibility in responses is strategic, emphasizing your resilience. This approach not only propels your startup's progress but also demonstrates your commitment to success.

Encourage feedback from your investors. Their experience and insights can be invaluable in guiding your startup's strategy and operations. Additionally, be clear about the kind of support or resources you need moving forward, whether it's further funding, introductions to potential partners, or strategic advice. Making specific requests can help investors feel more involved and invested in your startup's success.

Investors often have a wealth of experience in the business world. Their feedback can validate your business model, strategy, and vision. Investors can provide feedback on product development, pricing strategy, market focus, scaling strategies, hiring, emerging market trends and financial management. Maintaining a relationship with investors provides you an opportunity to continuously learn, gain access to wider networks and improve your credibility.

End your update by inviting feedback and support. Ask specific questions related to areas where you seek improvement or face challenges. This not only engages investors but also taps into their expertise and networks. Show openness to guidance and collaboration, reinforcing the partnership aspect of your relationship. This strategy not only fosters a supportive environment but also demonstrates your commitment to growth and receptiveness to external insights, further solidifying investor confidence in your leadership and your startup's potential.

In your progress report, leverage the opportunity to seek feedback and support from investors. They're not only funding sources but potential partners and mentors for your startup. Ask for input on overcoming challenges, improving your product, reaching your market, or achieving milestones. Express gratitude for their support, keep them engaged with updates, and show appreciation for their involvement in your journey.

Don't just present your progress; ask for feedback and support. Engaging investors in this way makes them feel more involved and invested in your success. Show that you value their input and are open to their advice. This collaborative approach can strengthen your relationship with investors and provide you with valuable insights to improve your strategy.

The best investor updates I’ve received from founders are generally broken up into these sections ? ?? TL;DR ?? Key metrics ??♂? Asks ?? What’s going well ?? What’s not going well ?? What’s next ?? Shout outs They're also easily scannable (section titles and bolded or emoji'd) Founders who hit those sections, should make most investors pretty happy and be able to help in meaningful ways that don't waste founder time.

1. Always be able to summarise WHAT your company does in 10 seconds. A strap-line; if you will. The number of pitch decks I’ve read trying to figure out what the heck the startup does! 2. Show a clear market need, whether it’s through stats or an obvious statement 3. Show a clear route to market. What are your plans to get this out there? How do you plan to support that internally? Do you have the right infrastructures? 4. Resource allocation; Where. Will. Their. Money. Go? 5. Important ?? → REALISTIC projections. This is a biggie. Startups are often dreamers. But Remember: investors don’t actually want to see you dreaming to big on your numbers. In fact it gives them more confidence when your projections are REALISTIC!

Depending on your stage, the way you show progress changes. Early stage The best way is to keep it simple and concise. The Good, The Bad & The Ugly. For each section, no more than three bullet points. You should also define what your Northstar Matrix is. Remember, there's only one Northstar, so don't get caught to vanity Matrixes and get carried away. As your startup matures, so will your reporting and structure. As for the frequency, once a month update (TLDR) in the early days is a great way to identify which investors can add the most value. Quarterly updates, in the form of a board meeting is a good practice to maintain governance and structure.

As a startup, its important to measure progress so you can ensure you're on track to achieve your goals. Progress can be measured in a number of ways, including financial measures, customer satisfaction, employee satisfaction, and more. Financial measures are important for startups because they can help you track your revenue and expenses. This information can be used to make informed decisions about how to allocate your resources.

PRETOTYPE AND TEST LIKE TESLA As innovation facilitator of 100+ projects, I like to share how Tesla interested buyers for their first car. In 2003, the founders of Tesla had an ambitious idea (an all-electric 2-door sports car). In order to convince potential buyers to order its car, Tesla created a pretotype of what the car would look like. Lotus supplied Tesla with a ‘glider’ Elise - which was filled with models of key components. This was not a prototype, because the vehicle didn’t function. Tesla was able to show buyers a close proxy for the final design. Tesla asked “Will you put down a $5,000 deposit to have it built to order? From this test Tesla secured several hundred deposits, a non-trivial result to reassure their Investors