Congratulations, you’ve secured funding for your startup!

As a startup founder, this is a major milestone for your business. However, it’s important to remember that the journey has just begun.

You and your angel investor would have chosen each other based on shared values, trust and the view of a long-term relationship. But once the dotted line is signed, the next step is post-investment management.

Post-investment management is critical to ensure your startup thrives and grows.

Below, we’ll discuss some key steps that you can take to get the most out of the founder/investor relationship to further grow your business.

Understand your investor’s expectations

Before you start your post-investment management journey, it’s important to understand your angel investor’s expectations.

Your angel is not just a financial investor, but also a partner who is invested in your success. Therefore, it’s important to have open and honest communication about the expectations of both parties.

For an investor, monitoring the performance of their investment (your business!) is essential to both your and their success.

The investor will have a solid monitoring process, which is as essential as the due diligence process they undertook to vet your business in the first place.  

The level of involvement your investor will have should have been clearly defined at the during pre-investment page.

Some common expectations that investors may have include regular updates on the company’s progress, adherence to agreed-upon milestones and active participation in board meetings.

By understanding your investor’s expectations, you can set yourself up for a successful partnership.

Create a clear communication plan

Communication is key to any successful partnership. As a founder, it’s important to keep your investors informed about the progress of your business and to learn from their expertise in the process.

Your communication plan should include regular updates on the company’s financials, product/service development, and overall progress towards milestones. This can be done through email updates, meetings or phone calls.

It’s important to be transparent about any challenges or roadblocks you may be facing, so that your investors can help you find solutions.

Open communication between the founder and angel investor is essential – your investor’s role is to be a mentor and a coach on your business journey.

The angel investor should be able to help you continue to evolve your company’s structure and practices as it grows, helping your company to define its place in the market.

If can often be helpful to define how much time your angel investor will give you on a monthly or weekly basis to help shape how this mentoring journey will look.

By clearly defining a communications plan from the get-go, you will be able to get the most out of the ‘value add’ service of being a part of an angel investor network, and find an essential mentor for your business journey.

Leverage your angel investor’s network

One of the biggest benefits of working within an angel investing group is access to their network.

Angel investors often have extensive networks of industry experts, potential clients, business resources and other investors.

As a founder, it’s important to leverage this network to help grow your business.

Your angel investor can introduce you to potential clients, strategic partners, and other investors. They can also provide valuable insights and advice on industry trends and best practices.  

Services such as legal advice and accounting can also be arranged through your angel investor’s network, if you don’t yet have established relationships with these key business services.

Particularly as the company grows, current service relationships might be ‘outgrown’ if the current legal or accountant professional doesn’t have the capability to service the expanding needs of the company.

Angel investors also are an important connection for follow-on investments, such as with venture capitalist firms.

Your angel investor should have good relationships with VC firms for follow-on funds for portfolio firms, and will be experienced in ensuring the right VC firm is chosen for your specific company.

By building relationships with these individuals and leveraging your angel investor’s network, you can gain a competitive edge and accelerate your growth.

Establish a strong board of directors

As your business grows, it’s important to establish a strong board of directors.

Your board should consist of individuals who bring diverse perspectives and expertise to the table. This can include industry experts, experienced executives and others.

Commonly, the board of directors is made up of two company seats, two investor seats and one independent seat.

The people for the board should be selected with relevant industry experience, specific to your company.

Your angel investor group should be able to help you selecta good fit for the independent board seat.

Your board can assist with working on the business plan, helping with client contacts, raising debt, helping with problems that arise and connecting with follow-on funding.

Your board should meet regularly to discuss the company’s progress and provide strategic guidance. They should also hold the CEO accountable for achieving the company’s goals and adhering to agreed-upon milestones.

Maintain a long-term focus and embrace feedback

When you secure funding from an angel investor group, it’s easy to get caught up in short-term goals and milestones. However, it’s important to maintain a long-term focus.

Your angel investor is invested in your success for the long haul, and you should be too.

As you grow your business, it’s important to keep the big picture in mind. This means developing a long-term strategic plan that aligns with your company’s vision and goals. 

By doing so, you can ensure that you’re building a sustainable business that will continue to grow and thrive in the years to come.

Embracing feedback is a part of refining your long-term focus as feedback is a valuable tool for growth and improvement.

As a founder, it’s important to embrace feedback from your angel investors, board members and other stakeholders.

This feedback can help you identify areas for improvement and make necessary changes to your business strategy to see long-term goals eventualise.

It’s important to remember that feedback is not always easy to hear. However, it’s important to approach it with an open mind and a willingness to learn. By doing so, you can build a stronger and more successful business.

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