Here are some key strategies and recommendations for founders when dealing with institutional investors:
1.Establish clear lines of communication:Founders should ensure that communication with institutional investors is open, transparent, and frequent. This includes regular business updates, financial reports, and important decision notifications regarding the company's strategy and operations.
2.Set reasonable expectations:During the fundraising process, founders should clearly articulate the company's goals, expected growth trajectory, and possible risks. This can help institutional investors set reasonable return expectations and understand the risk-return ratio of their investments.
3.Fulfilling commitments and responsibilities:Founders are accountable to institutional investors to ensure that they are executed in accordance with the business plan and commitments. In the event of a delay or change, the investor should be communicated in a timely manner and the reason should be explained.
4.Respect for the expertise and experience of investors:Institutional investors usually have extensive industry knowledge and investment experience. Founders should respect their opinions and suggestions and seek their guidance and support when necessary.
5.Unsolicited information:Don't wait for investors to ask before sharing important information. Proactively provide updates on the company's progress, market dynamics, and competitive environment, showing your concern and respect for investors.
6.Building a relationship of trust:Trust is the foundation of any successful relationship. Founders are expected to build and maintain trust with institutional investors through honest, transparent behavior and consistent performance.
7.Managing Conflict and Disagreement:Divergences with investors may arise on the operational and strategic direction of the company. Founders should handle these conflicts in a professional and mature manner, looking for solutions for common interests.
8.Leverage investor networks and resources:In addition to financial support, institutional investors often have extensive business networks and industry resources. Founders should actively seek their help to drive the business forward and expand the partnership.
9.Compliance with regulations and protocols:Founders should ensure that they comply with all relevant regulations and agreements in their dealings with institutional investors, including information disclosure, shareholder protection, etc.
10.Long-term perspective:Founders should recognize that relationships with institutional investors are long-term. Even if you encounter difficulties in the short term, commit to maintaining this relationship, as it can have a significant impact on the long-term development of the company.
Overall, managing relationships with institutional investors requires founders to demonstrate leadership, professionalism, and good interpersonal skills, while ensuring that the best interests of the company and the expectations of investors are balanced and met.