Investor Relations · Fundraising
Many founders think investor relations ends once the cheque clears. Wrong. What you do *after* you raise capital often matters more than what you did to raise it.
Investors who feel informed, respected, and engaged are more likely to reinvest in your next round, make strategic introductions, and offer help during tough times. Investors who feel abandoned? They become your fiercest critics.
This guide walks you through how to build and maintain investor relationships that actually work—including what to communicate, how often, and how to handle difficult conversations.
Why Investor Relations Matters (Post-Check)
Strong investor relations aren't just nice-to-have. They directly impact your business:
- Faster future rounds: Investors who know and trust you will commit faster to your next round.
- Better terms: Investors who see momentum and transparency offer better valuations and terms.
- Strategic help: Engaged investors make intros to customers, partners, and talent.
- Emotional support: When things get hard (and they will), investors who care show up.
- Down-round resilience: If you need to raise at a lower valuation, investors with strong relationships stick with you. Others pass[1].
The Investor Relations Framework (TCSD Model)
Strong investor relations rest on 4 pillars:
1. Transparency
Share the real story—wins and challenges. Hiding problems until they explode destroys trust.
- Share wins: "We hit our customer target 2 months early."
- Share challenges: "Churn went up 2% this month. Here's why and what we're doing."
- Share pivots: "We're shifting focus from enterprise to mid-market because the unit economics are better."
2. Consistency
Regular communication prevents surprises. Same cadence, same time every month.
- Set a monthly update schedule (e.g., first Friday of every month).
- Same format each time (makes it easy to track progress).
- Same metrics month-to-month (no cherry-picking data).
3. Clarity
Explain complex metrics in plain language. Don't assume investors know your space as well as you do.
- Define terms: "ARR = annual recurring revenue. We add ₹50L in new ARR each month."
- Highlight trends: "Growth is slowing because we're optimizing pricing, not because of market issues."
- Show context: Include industry benchmarks so investors can assess whether 20% MoM growth is good (it is) or bad (it isn't).
4. Data Integrity
Numbers should be accurate, auditable, and consistent. Sloppy data erodes trust fast.
- Use a single source of truth for metrics (not 5 different spreadsheets).
- Reconcile monthly (actuals should match what you reported last month).
- Audit trail (investors should know where numbers come from).
What Metrics to Share (And What to Hide)
Investors expect a standard set of metrics. Share these religiously:
Core Metrics to Always Share:
| Metric | Why It Matters | Frequency to Share |
|---|---|---|
| Revenue (ARR, MRR, or annual) | The fundamental unit of business health. Everything else is commentary. | Every month |
| Revenue growth rate (MoM or YoY) | Tells investors if you're accelerating, stable, or decelerating. | Every month |
| Monthly burn rate | Answers: "When will this company run out of money?" | Every month |
| Cash runway | Months of runway at current burn rate. Critical for re-raise planning. | Every month |
| Number of customers / users | Growth and engagement. More than just revenue per user. | Every month |
| Gross margin | Path to profitability. Shows unit economics are improving. | Every quarter |
| Churn rate (if SaaS) | Customer retention. Low churn = sustainable business. | Every quarter |
| CAC payback (if applicable) | How fast you recover acquisition costs. Signals efficiency. | Every quarter |
What NOT to Share (Or Be Very Careful With):
- Unvalidated product roadmap: Don't commit to features you're not sure about.
- Internal disagreements: Keep board-level debates out of investor updates.
- Key person dependencies: If your success depends on one engineer, don't broadcast it.
- Specific technical details: Security vulnerabilities, architecture decisions, etc.
- Customer-specific wins/losses: OK to say "we lost a ₹50L customer" but not "Reliance pulled out"—that could spook other customers.
- Extremely early-stage market research: Show validation, not just surveys.
The Ideal Update Cadence
Different investor types expect different cadences:
| Investor Type | Expected Cadence | Format | Expectation |
|---|---|---|---|
| Board members (VCs with board seats) | Monthly + board meetings (quarterly) | Email update + board materials | They're hands-on. They need detailed metrics and strategic discussions. |
| Lead investors (no board seat) | Monthly email | Narrative email + spreadsheet | They want proof you're executing. Stories + data. |
| Follow-on investors | Quarterly (or monthly if you send to all investors) | Group email or blog post | Less detailed than leads. They want the headline story. |
| Angel investors | Quarterly (minimum) | Email or LinkedIn post | They invested partly in you personally. Keep them emotionally connected. |
Best practice: Send one unified monthly update to all investors. This keeps messaging consistent and everyone informed at the same time.
How to Write an Investor Update (Template & Example)
The Structure (Keep It to 1-2 Pages):
Subject Line: [Month/Year] Update: [Company Name] – [One Key Metric/Headline]
Example: "November Update: GEMGEM – Hit ₹5Cr GMV Milestone"
Opening (1-2 sentences): The headline. What happened this month that matters most?
Example: "We hit our ₹5Cr GMV milestone 2 weeks early, driven by the luxury influencer partnership we launched. Churn also stayed at our target of 3%, showing strong product-market fit."
Key Metrics (Dashboard): Show the numbers in a simple format:
- Monthly GMV: ₹50L (↑ 18% MoM)
- Active sellers: 500 (↑ 50 new this month)
- ARR: ₹3.5Cr (↑ 20% YoY)
- Monthly burn: ₹40L
- Cash runway: 8 months
- Churn: 3% (target: < 5%)
What Went Well (2-3 bullet points): Highlights of the month.
- Launched influencer partnership with 50+ luxury creators. Drove 2,000 new buyers (acquisition cost: ₹500/buyer vs. prior ₹1500).
- Completed secondary authentication tech. Now 99.8% of items are verified within 24 hours (was 48 hours before).
- Hired head of operations (ex-Flipkart). Starts next month. Infrastructure improving.
What's Challenging (1-2 bullet points): Be honest about headwinds. Shows maturity.
- Supply from smaller sellers is slower than expected. September inventory down 10%. We're adding 100 pro sellers in November (from our waitlist) to backfill.
- Payment gateway latency causing some failed transactions. Working with provider; should be fixed by mid-November. Expected impact: +₹20L monthly GMV once fixed.
Capital/Funding (if relevant): Are you on track? Need more? Timeline?
- On track for ₹10Cr Series A raise in Q1 2026. Talking to 8 funds. Strong signals so far.
- Current runway: 8 months. Series A would extend to 24+ months, giving us runway to profitability.
Asks / How You Can Help (if any): What do you need from investors?
- If you know luxury brands open to partnerships, please make an intro.
- Looking for an operational CFO to join board. Know anyone?
Close: Personalized note. Show gratitude. Be authentic.
"Thanks for believing in this vision. We're excited about the momentum and grateful for your support. Let me know if you have questions on any of the above."
Handling Difficult Investor Conversations
Scenario 1: Metrics Are Down / Slow Growth
How to communicate:
- Don't hide it. Tell them immediately (in the update or a personal call).
- Explain why: "Churn went from 4% to 6% because we made a pricing change that alienated some early customers."
- Show you have a plan: "We're adjusting pricing back down for legacy customers. New numbers show reversion to 4%."
- Give a timeline: "We expect to be back to growth trajectory by next month."
Scenario 2: You Need More Capital (Earlier Than Expected)
How to communicate:
- Be early (don't wait until runway is 2 months).
- Frame it strategically: "We're seeing unexpected product-market fit. We want to capitalize on this. Raising ₹2Cr instead of ₹1Cr to take share faster."
- Show conviction: "We've talked to customers. They want faster delivery. More capital = we hire and execute."
- Ask for help: "Can you make intros to other VCs? We'd love your co-lead."
Scenario 3: You're Pivoting / Changing Strategy
How to communicate:
- Explain the data: "B2B sales were taking 6 months. B2C adoption happened in 2 weeks. We're following the puck."
- Show it's not a failure: "We discovered a better market than the one we initially targeted."
- Get alignment: "We wanted your input before we formally pivot. Does this make sense to you?"
Scenario 4: A Key Person Leaves
How to communicate:
- Tell them immediately (not in the monthly update).
- Be matter-of-fact: "Our CTO took an offer we couldn't match. We're sad but respect the move."
- Show continuity: "They're staying 8 weeks to transition. We have a backfill plan. Here's who's taking over."
- Don't panic (don't let them panic): "This is normal. Every company has attrition. We have a solid team."
Beyond Metrics: Building Actual Relationships
Metrics are table stakes. Relationships go deeper:
1. One-on-One Calls (Quarterly or as needed)
Beyond the monthly email, grab coffee (or Zoom) with your key investors every 3 months.
- Ask for advice on specific decisions (not just updates).
- Ask about their company and what they're working on (show you care).
- Ask for intros when you need them (customer, partner, talent).
2. Investor Day / Demos (Quarterly or Semi-Annual)
Bring investors together to see what you're building. Show traction. Make it fun.
- Live product demo.
- Customer testimonials (video is powerful).
- Q&A + networking.
3. Celebrate Wins Together
When something big happens (new customer, partnership, milestone), tell your investors first. Make them feel part of the success.
4. Ask for Help (Not Just Money)
Investors want to help. Ask them for:
- Customer intros.
- Hiring advice.
- Strategic input on product decisions.
- Accountability (have them hold you accountable to goals you set).
5. Remember They're Humans
Send birthday notes. Remember family updates they've shared. Show you care about them as people, not just capital sources.
Tools for Investor Relations
- Carta: Cap table management + investor updates + document sharing. Best-in-class.
- Ledger: Simple, founder-friendly investor communication platform.
- Pulpboard: Beautiful investor updates. Drag-and-drop templates.
- Google Sheets + Email: Budget option. It works. Many successful founders use this.
- Finova Dashboard: We build custom investor dashboards for founders. Real-time metrics your investors can log into.
Build Investor Relations Discipline with Finova
At Finova Consulting, we help founders build investor relations frameworks that actually work:
- Metrics dashboard: We set up what to track and report.
- Update templates: We help you write compelling, data-driven investor updates.
- Communication cadence: We advise on frequency and format.
- Investor engagement strategy: We help you maintain relationships between fundraises.
To build your investor relations strategy, reach out at contact@finovaconsulting.com.
Conclusion
Strong investor relations are built on transparency, consistency, clarity, and genuine relationship-building. Share metrics regularly. Be honest about challenges. Ask for help. Celebrate wins together.
Investors who feel informed and respected become your biggest advocates. Those who feel abandoned become your biggest critics. The choice is yours.