Managing Investor Relations

Good investor relations can be a competitive advantage. Bad investor relations can sink your company. Here's how to do it right.

The Monthly Update

Send Every Month

• Same day each month
• Even when things are hard
• Keep it concise (1-2 pages)
• Be honest and transparent

Structure:

1. Executive Summary (3-4 bullets)

• Key wins
• Major challenges
• Critical decisions
• Ask for help

2. Metrics Dashboard

• Revenue and growth
• Key operational metrics
• Burn rate and runway
• Customer metrics

3. Progress Update

• Product developments
• Key hires
• Partnerships
• Customer wins

4. Challenges

• What's not working
• Obstacles faced
• Decisions needed
• Areas needing help

5. Asks

• Specific help needed
• Introductions wanted
• Advice sought
• Resources required

Board Meetings

Frequency:

• Quarterly for most companies
• Monthly for early stage
• As needed for crisis

Materials (Send 3-5 Days Before):

• Board deck (15-20 slides)
• Financial statements
• Metrics dashboard
• Key decisions needed

Board Deck Structure:

1. Agenda (1 slide)

• Topics to cover
• Time allocation
• Decisions needed

2. Executive Summary (1 slide)

• Key highlights
• Major concerns
• Board decisions needed

3. Metrics (2-3 slides)

• Financial performance
• Operational metrics
• Trends and analysis

4. Business Update (3-5 slides)

• Product progress
• Sales and marketing
• Operations
• Team

5. Deep Dive Topic (3-5 slides)

• Rotate each meeting
• Go-to-market strategy
• Product roadmap
• Competitive analysis
• Unit economics

6. Financial Review (2-3 slides)

• P&L review
• Cash flow
• Runway
• Budget vs. actuals

7. Asks and Discussion (1 slide)

• Key decisions
• Strategic questions
• Help needed

Meeting Flow (2 hours):

• 15 min: Socializing
• 30 min: Presentation
• 60 min: Discussion
• 15 min: Executive session

Managing Board Dynamics

Set Clear Expectations

Your Role:

• Run the company
• Make day-to-day decisions
• Execute the strategy
• Report honestly

Board's Role:

• Provide guidance
• Make major decisions
• Support management
• Hold you accountable

What Requires Board Approval:

• Raising capital
• Major acquisitions
• Selling the company
• Annual budget
• Executive compensation
• Significant contracts

What Doesn't:

• Day-to-day operations
• Hiring (below C-level)
• Product decisions
• Marketing tactics
• Customer deals

Build Trust

Be Transparent

• Share bad news quickly
• Explain your thinking
• Admit mistakes
• Ask for help

Be Prepared

• Send materials early
• Know your numbers
• Anticipate questions
• Have backup data

Be Decisive

• Make clear recommendations
• Explain your reasoning
• Listen to input
• Make the call

Handling Difficult Situations

Missing Targets

Don't:

• Hide bad news
• Make excuses
• Blame others
• Avoid the topic

Do:

• Report honestly
• Explain what happened
• Share your plan
• Ask for input

Board Disagreements

When Board Disagrees:

• Listen carefully
• Understand their concerns
• Explain your perspective
• Find common ground
• Make a decision

When You Disagree with Board:

• State your position clearly
• Explain your reasoning
• Listen to their concerns
• Try to find compromise
• Accept their decision (or resign)

Difficult Board Members

The Micromanager:

• Set clear boundaries
• Provide detailed updates
• Ask for specific help
• Escalate if needed

The Absentee:

• Engage them directly
• Ask for specific help
• Make them feel valued
• Consider replacing

The Negative Nancy:

• Acknowledge concerns
• Show you're addressing issues
• Focus on solutions
• Don't get defensive

Leveraging Your Board

Get Introductions

• Customers
• Partners
• Investors
• Recruits

Get Advice

• Strategic decisions
• Operational challenges
• Market insights
• Pattern recognition

Get Support

• Fundraising help
• PR and marketing
• Recruiting
• Crisis management

How to Ask:

• Be specific
• Make it easy
• Follow up
• Say thank you

Investor Communication Best Practices

Do:

• Communicate regularly
• Be honest and transparent
• Share both good and bad
• Ask for specific help
• Thank them for support

Don't:

• Only communicate when raising
• Sugarcoat bad news
• Ask for vague help
• Ignore their input
• Waste their time

Red Flags

Warning Signs of Board Problems:

• Lack of engagement
• Constant disagreements
• Micromanagement
• Loss of trust
• Side conversations

Address Immediately:

• Talk to board members 1-on-1
• Understand concerns
• Make changes if needed
• Consider board changes

When to Change Board Composition

Add Board Members When:

• Need specific expertise
• Raising new round
• Entering new phase
• Missing key perspectives

Remove Board Members When:

• Not engaged
• Not adding value
• Causing problems
• Wrong fit for stage

How to Remove:

• Talk privately first
• Explain reasoning
• Offer graceful exit
• Follow legal process

Building a Great Board

Ideal Board Composition:

• 5-7 members total
• 2-3 founders/management
• 2-3 investors
• 1-2 independents

Recruit Independent Directors:

• Domain expertise
• Operational experience
• Network and connections
• Diverse perspectives

Compensation:

• 0.25-1% equity
• Vesting over 3-4 years
• Small cash stipend
• D&O insurance

The Bottom Line

Your board should be your biggest supporters and toughest critics. Manage them well and they'll help you build a great company. Manage them poorly and they'll make your life miserable.

Communication, transparency, and mutual respect are the foundation of great investor relations. Invest time in these relationships—they'll pay dividends when things get hard.