What are the most effective ways to follow up after a VC funding round?

From my experience as VC lawyer I can tell that in particular the communication with angel investor can bring a growth company to a next level: angel investor typically have deep industry knowledge and are willing to share this knowledge with the company. Apart from the knowledge point, it is their network which the founders can leverage. In practical terms, your angel investors could schedule appointments and make introductions. In the end, this is maybe even more helpful as the cash investment of the angel investor. To leverage this oppurtunity, founders have to communicate very clear what they are expecting from their investors.

The best way I have seen people do is the following: 1. Clearly segment the communication in 3 buckets: -- B1: Updates in terms of key-metrics since the last time the communication was made -- B2: What new initiative was taken, what was dropped, what will be continued. Define RoI metrics as much as possible so that it is easy for anyone to know if this is working. The #initiatives should be (very) small in number -- B3: Help that you seek from your Investors / Board members - network, insights, options 2. Send this communication on a fixed day every month / quarter - depending on the stage of the business 3. Show courage and audacity - the idea of communication is to not make easy promises. Mark these clearly as goals vs aspirations

Effective communication with investors is crucial. Keep them informed with regular updates on your progress and challenges. Seek their advice and referrals when needed. Transparency and honesty build trust. Remember, they're not just funders; they're partners in your success. Good news or challenges, don't hesitate to reach out.

Develop a structured communication plan with a schedule for regular updates, whether monthly or quarterly. Investors appreciate predictability in communication. This can range from formal reports to informal catch-up calls.

Did you think that once you’ve wooed those venture capitalists and seduced them with your disruptive tech babble, you could just ghost them? Oh no, no, no. You've got yourself a relationship now, and as in any good romance, communication is key. So regularly update your investors with both the sunshines and the rainstorms, but be prepared: much like sending "Wish you were here" postcards to an ex, it may bring mixed reactions.

Recognition doesn't always need to be financial. Public acknowledgment, team-building activities, and personal notes of thanks can also boost morale and foster a strong company culture.

Your squad is more than a workforce; they're the backbone of your success. Take a moment to express genuine gratitude for their hard work and dedication. Acknowledge their contributions to your shared vision—it's a team effort, after all. Share the roadmap ahead. Transparency builds trust, and when everyone's on the same page, the collective energy is unstoppable. Make them feel valued, not just as employees, but as integral parts of your mission. Motivation stems from a sense of purpose, so ensure they understand their role in the bigger picture. Recognizing their efforts isn't just a feel-good moment; it's an investment in a motivated and engaged team. PT

A company that I like tries to liquidate few ESOPs with every fund-raise. They use around 5%-10% of their Funding round for ESOP liquidation, and make it known to the Investors prior to the round. Of course, the quantum is dependent on the stage of the company. The quantum could be / should be nil for very early stage of the business.

Use the momentum from the funding round to build customer trust and reinforce the longevity and stability of your company. This might also be the right time to launch loyalty programs or referral incentives.

A financing is not about valuation, but about validation in the eyes of the customer. Those same customers are quick to size up a company from a capital sufficiency point of view, specifically whether liquidity is available to finance the working capital requirement and what that means for getting paid. That last part is especially important during times of economic contraction. So, the financing is a de-risking event in that regard, so market it as such when building relationships with customers. The financing jump starts the cash generation engine in a way. The customers are the fuel that keeps the engine running, and that appreciation should be expressed in no uncertain terms. Hope that helps.

When a company is working in the B2B industry and wants to partner up with big corporations, getting VC money is seen as huge advantage, a even better from a recognized VC firm. For big coroprations the possibility to have a long term partnership and use the services or products of the partner on the long term is important. A partnership with an underfunded start-up just does not make any sense.

Founders should assess alignment with their current strategy, update key metrics, and ensure it reflects their evolving vision. Use it as a roadmap for execution and future fundraising, keeping it ready for opportunities. Stay focused on conveying value and progress to investors and stakeholders.

When reviewing your pitch deck, consider how your story has evolved and how investor feedback might be integrated. This document can also serve as a historical archive that tracks the evolution of your company’s narrative.

I suggest thinking of your pitch as your investment thesis where you argue how returns will exceed the investor's opportunity cost of capital. That's the economic spread. To help in that regard adopt the mindset that you and your company are first and foremost in the value creation business. That's the setup no matter the stage, in my view. The deck itself is the tool that illustrates the value proposition. It's alive. It's ever-changing. Yet the core message of how it is the company creates value should be a constant. This applies to early-stage ventures where initial evidence should be presented. It also applies to later-stage companies where operating milestones and financial performance start to surface. Hope that helps.

While setting objectives, ensure that there's a balance between ambitious goals and what's operationally feasible. It’s essential to maintain the agility to pivot as new market information becomes available.

Consider creating a case study of your funding round. This can be a valuable asset internally for onboarding and training, as well as externally for marketing and establishing thought leadership in your industry.

You’re doing amazing things–we know it, you know it, your dog knows it. But while you’re painting the town red with your successes, keep a slice of humble pie handy. Being grounded isn’t just desirable, it’s downright illustrious.

After the round is before the round. Some key aspects to keep in mind: - Keep the investors in the loop who didn't invest in your current round. You established a contact already; why let it turn cold? - Share successes and achievement of milestones with investors in your network. Most VCs are well connected and share deal flow with each other. - Never forget, this is a relationship game. Be honest, communicate bad news early to your investors, and be open to advice from people who have seen similar scenarios before. Most importantly, treat your investor as a partner and not as a capital source. Relationships need to be nurtured and will be built over time.

It is true that after the round is before the round. Your investors (angel investors and in particular VCs) are generally well connected to investors who invest in later stages. Founders should discuss with their shareholders which investor to address for the next financing round and use the network and connections their shareholders have. Get warm intros from your shareholders instead of doing cold calls!

After a funding round, it's important to analyze the investor dynamics that have emerged. Some investors may want to be highly involved, while others prefer to stay passive. Understanding these dynamics can help you effectively manage investor relationships. Moreover, keep an eye on your cap table and understand how the new funding affects equity distribution and decision-making authority.

Every once in a while, drop your investors a breadcrumb—a kudos from TechCrunch, a tasty new contract, or a new hire that makes you look like you're assembling the Avengers of Innovation. Make it akin to handing them a reassuring pat on the back that whispers, "Your money is fertilizing the right money tree."