funding, investment, investors, financeA scenario I’m curious about. Imagine a company that has secured its first investment, which will be used to fund people and purchase hardware needed to proceed.
From the investors point of view, will they want to know what is being purchased? If so, do they typically want just a high level summary, or the amount and usage, or a breakdown of each specific item and its cost?
I’m not suggesting anything should be hidden - but I’m genuinely curious as to what the expectation is and how much information should be reported back.
Every month I'd put together a 'board pack' it contained
the minutes from the last meeting
agenda for current meeting
management accounts (full details from my accountants)
cash flow forecast (overview of position and projections for future)
executive summary (written summary of sales, marketing, team, product, investment)
Every investor looks at business differently. Some like overviews, some like details. The above pack gives them a choice of it all.
Most important thing is that they are kept informed (whether they read it or not is up to them), but there should be no surprises. With the above info they can spot any problems and pre empt with advice. Or if you go to them for advice they know your business's position in all areas and the trends you've been seeing.
Be as transparent as possible with those with vested interests, they should be there to help. If you don't trust them then I'd advise not taking their money.
If needed I can probably find a non controversial board pack from a now defunct business and link to it on Google docs as an example or template. (Don't have time to trawl them right now)
Edit: to note that the management accounts were not itemized. They were categorised. So for example it didn't say I had spent £2 on paper and 50p on staples. Instead it would say £2.50 on stationery
Edit: to add link to an example board pack - hopefully redacted enough
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