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I sold a startup for $1B in a few years and never sent an investor update. YMMV.
by throwa9724567 2y ago
I sold a startup for $1B in a few years and never sent an investor update. YMMV.
- jedberg 2y agoFirstly, I never said it was always true, and secondly, I have a really hard time believing you, because at least every VC I've ever worked with asks their startups for an update every three months. I find it really hard to believe you got to a $1B valuation without ever having anyone ask you for an update.
- FreakLegion 2y agoI have five institutional investors and none of them have ever asked for updates. There isn't much point before Series B, since good early-stage investors are actively involved with the company anyway. Back in our Seed days we sent out monthly updates to everyone, angels included, but now we don't. That's what board meetings are for.
- jedberg 2y agoExactly. You sent regular updates and then had board meetings with regular updates. They probably never asked because you were already providing it.
- FreakLegion 2y agoOnly two of those institutional investors have board seats. The other three don't get formal updates and don't have information rights. My point was that they didn't ask because they were good investors and actively involved with the business, so they already knew what was going on.
- jedberg 2y agoRight, and my point was that you had someone to be accountable to on a regular basis, so it helped keep you motivated and on track to produce results to report.
- FreakLegion 2y agoNo, it didn't. It was a waste of time for the handful of months we sent them.
- throwa9724567 2y agoI never said I didn’t update my investors. I talked to them, hung out with them, and had board meetings. But I never sent formulaic investor updates.
- jedberg 2y agoSo you’re saying you … provided them with regular updates? I never said anything about formulaic investor updates.