Most investors don’t reply to updates. I think that’s ridiculous. Here’s why I reply to every single one…
It’s the Least You Can Do
Founders are working 80, 90, 100 hours a week. And they’re doing it on our behalf, at least in part.
The least I can do is take 30 seconds to reply to an e-mail! It’s nothing compared to what they and their teams have to do every day.
Here’s what such a message might look like:
“Amazing growth this month Jim! I know you worked hard for this.
Best,
Francis”
It’s that simple. A brief, positive reply is all you need.
So it burns my butt that according to Dan Siroker of Limitless, 90% of investors don’t do it.
Letting Founders Know You Care
Replying to updates also lets the founder know that someone cares! If you’re just sending updates out into the ether, you must wonder, “Has everyone written this company off already? Does anyone give a hoot?”
I do care, and I want them to succeed. A simple reply to a message is one way to show that.
People want to work with people who care about them and appreciate them. I try to be that person.
Being the Hype Man
Some founders use investor update replies to hype up their team.
One amazing founder I invested in last year puts all the replies into the team Slack. This gets everyone amped up!
I bet those cheering crowds of Bulls fans made Michael Jordan jump a little higher. Startups aren’t so different.
There’s nothing wrong with being a cheerleader sometimes. And if it improves a company’s performance even marginally, I benefit too!
Keeping the Lines of Communication Open
When you reply to updates, you are building a relationship with a founder.
That’s valuable in itself. But there’s also a self-interested reason to do it…
You might want to invest again! And if that opportunity arises, who do you think will get the first shot at it: an engaged investor, or an investor the founder never hears from?
I don’t know where the next Uber is coming from. So whether a startup is doing well or struggling, it behooves me to stay in close contact with the founder.
Wrap-Up
Dan Siroker doesn’t get many replies to his updates. Neither do most other founders I speak to.
There’s no excuse for this.
Luckily for me, this is an easy way to differentiate. I may not know everything, but I can reply to a darn e-mail!
If you’re a founder and you’re not getting replies, don’t worry! This is normal, even if it shouldn’t be.
And if you’re an investor, reply to the dang updates! It’s really not that hard. Keep in mind everything the founder is doing for you!
Do you get replies to your updates? Leave a comment and let us know!
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