Always Keep Investors Updated on Company News

Armando Vera Carvajal August 18, 2019

Always Keep Investors Updated on Company News

Even while you are raising and negotiating, you should make sure that your investors know when you have material news. This is not just the prospective investors, but the ones who have already invested in your company. You should always be communicating with them and letting them know how you are doing. That will help them evangelize for you.

We use the term “material news” to mean something that will have an impact on your company, whether it’s the ability of your company to acquire new customers, the availability of a new or enhanced product to get revenue, a significant new hire, or a new partnership or distribution agreement that will open up new channels for you.

It does not mean anything that is “new”; you don’t want to be telling them about the “new” branded coffee mugs you have to your staff this week. “News” is when it impacts (or will impact) many people or is a significant change (positive or negative) or is something unique (i.e. the cool factor).

You can distribute the news in a variety of ways, including:

  • Press release
  • Social media post / blog post
  • Word of mouth (i.e. at an event)
  • Email blast
  • Text / direct message
  • PowerPoint slide
  • Video / video podcast

You may even be so excited about your company news that you will want to tie a note to the foot of a carrier pigeon and release it. Well, that may be overdoing it, but the bottom line is that you need to be proactive about communicating your company news to existing and future investors.

A few tips to leave you with:

  • Create a news schedule in writing
  • Try to have a steady cadence of news (i.e. one news announcement per month or every other month), so it doesn’t look like you’ve gone quiet for 9 months, living in a cave
  • Have a plan about the different channels and formats you want to use to communicate your news
  • Study (or have someone else on your behalf study) how news is communicated and structured in your industry – learn from others that you respect or want to emulate.