After fundraising is before fundraising
Reaching your funding goal and welcoming new investors is a big achievement that should be celebrated. However, this success comes with clear expectations from investors to achieve the next milestones to further grow the business.
After a fundraising success, the race continues, as you will likely need more funding to fulfil the growing expectations of your investors that will enable the business to flourish. The following steps shouldn’t be forgotten after the funding celebration party is over.
Create value and focus on traction
Having a full bank account is tempting, but to meet the expectations of your new shareholders, the proceeds must be invested wisely to create more value. Build a clear, milestone-based roadmap and spend the cash on tangible traction that increases the value of your business, whether it’s an investment in ARR growth or an increase in TRL level.
Take care of your shareholders
Your shareholders are your most important stakeholders, especially if you are still financially dependent on them. Make sure that you develop and maintain a good relationship with them. This includes regular, transparent, and open updates; high responsiveness; and the ability to learn from constructive criticism. Once this good relationship is established, the chances of your investors supporting your business to the full extent, participating in follow-on financing rounds, and potentially prioritising you over other portfolio companies significantly increase.
Use your newly increased network
Since you have already been able to close a round, you surely have also already talked to many investors who were interested in your business but considered it “too early” to invest in it. These contacts might be an important piece of your next funding round. Add these contacts to your monthly investor newsletter and inform them early before you plan your next funding round.