My dog Elsa is very intelligent. Anytime she does something naughty, she’ll sit quietly beside my legs while I express my disappointment with her, all the while looking at me with those innocent soft eyes and the most pitiful expression on her face. Elsa’s eyes melt me, but I doubt this same approach will work with Investors whose hard-earned cash you are burning to fuel your startup. When founders and funders are at odds, there is trouble in paradise. Having the faith of investors necessitates honesty and transparency.

Here are a few tips to keep the ones with the cash happy:

• Communicate! Communication is the first priority. Keep the investors in the loop, sending out periodic emails and notifications about everything, from cash flow to new investments to problems in marketing.
• Find one investor who perfectly associates with your idea and vision. Use him as your ‘connector’ with other investors who will listen to a fellow investor.
• Listen to their advice. Usually startups are started by people in their 20’s or early 30’s. An investor is usually an experienced player who has seen the bulls and bears come and go. You earn the investors’ respect by giving their suggestions adequate consideration.
• Lastly, understand that the investors’ concern is genuine and justified. They have a right to know about the startup they are putting their money in; it’s not just their money, but their reputation too on the line.

Eazyhire Team