When we start to work with a new portfolio company, one of the things we always suggest is that in addition to (sometimes lots of) ad hoc communication via eMail, Skype, Basecamp, etc. we set up a standing meeting or call, at least during the first 9-12 months following our investment. Typically it’s a one-hour monthly call, and the purpose of these calls is to get us updated and to talk through current issues. Our experience is that these calls are a very effective and efficient way to discuss things and to find out how we can help. The last thing we want to do is be a burden on the founders, and so we try to be very respectful of the their time (even if we’re not as efficient as Oliver Samwer with his famous “supercalls” – 12 hours, 180 companies, or something like that).
The idea is that in the beginning you create a rough roadmap for the next 12 months, broken down into key areas like Product & Tech, Sales & Marketing and Team/Hiring (see slide 1), plus a financial plan. Better yet, you already have a plan 🙂 and you discuss that with your investors to get everyone on the same page.
Then, every month you create one slide which shows progress and problems, as well as the original plan, in each of the three key areas, plus key metrics. I’ve borrowed the “Progress, plans, problems” technique from Seedcamp; the metrics are taken from my own SaaS dashboard template. So just one slide, once a month, with information you should already have anyway, and you should have a great basis for highly productive calls or meetings with your investors.
It obviously doesn’t matter if you use Keynote, Google Docs or something else, and depending on the needs of your company you may want to emphasize different key areas or include other KPIs. So this isn’t meant to be prescriptive but rather a suggestion or a starting point for founders who are about reporting for the first time – if you are already providing more comprehensive monthly reports, don’t change it!