Dear SaaStr: I am a startup founder that writes extensive monthly report to investors. We are also doing weekly meetings, are they asking for too much of my time?
Yes.
Some rough rules:
- For every 1% of a company an investor owns, an investor should get one meeting a year. This includes both board meetings and informal coffee meetings. Until you are past $10m ARR, then you can scale this back in some cases.
- Every investor that owns >=1% should get a monthly update until $10m ARR. $20m ARR even better.
- Every investor that owns >=3-5% should be fully in the loop on what’s happening in the company until you are so big you don’t need any capital anymore, or their capital is irrelevant. They deserve this, and you may get burned if they get out of the loop.
- Until you are at Initial Traction, every investor that can possibly help you should get a monthly update. Even if they only invested $10k. Otherwise, you won’t get the help.
"Do Board Meetings Actually Matter For Startups?" @HarryStebbings + @jasonlk
1⃣ A check-and-balance
2⃣ Helps to put VP's feet to the fire
3⃣ Fiduciary responsibility once raise real money pic.twitter.com/Cv7Gmv0ZOG— Jason ✨Be Kind✨ Lemkin 🇮🇱 (@jasonlk) April 12, 2024
And a related post here:
(every week image here)
