Whitepaper

After-Investment Strategy

In this whitepaper, you will learn everything about developing an adequate strategy after completing a fundraising

After a company has closed a financing round, it can finance its growth using the capital raised and scale its business. In order to be successful, the implementation of an after-investment strategy helps. The aim of the strategy is in particular to increase the value of the company and to secure financing.

Components of a successful after-investment strategy are the development and adjustment of strategic plans, proactive investor relations management including reliable financial reporting and structured board meetings, the management of the liquidity run rate, the development of a reliable data and KPI structure to control value-driving activities and the assurance of follow-up financing.

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Table of content

Communication of strategic adjustments
Keeping investors informed about operational development
Create a monthly financial reporting
Manage investor meetings
Determine the liquidity run rate
Manage the liquidity burn rate
Track financial performance based on KPIs
Secure follow-up financing

Communicate strategic adjustments

After the successful closing of a financing round, the initial growth strategy must be further developed and adapted. In an ongoing, iterative process, investors should be informed about strategic adjustments made and involved in possible decision-making processes.

If you want to learn more about what successful communication about strategic changes can look like, download our Whitepaper After-Investment Strategy now.

Keeping investors informed about operational development

Operational excellence is a crucial success factor for scaling a start-up. Therefore, investors are interested in being regularly informed about the most important news in the areas of product development, sales, marketing and HR. Not only positive but also negative developments should be communicated here. In this way, investors can become active and provide support if needed. You can find out how information about operational developments can be provided and what needs to be taken into account in our Whitepaper After-Investment Strategy.

Create a monthly financial reporting

In order to deepen investor confidence, investors should be regularly informed about the financial development of the company. To this end, regular reports can be sent to investors containing updates on the income statement and liquidity development. This ensures a constant flow of information.

If you want to learn how to create a monthly financial report, download our Whitepaper After-Investment Strategy now.

Manage investor meetings

Even if investors are provided with information via written channels, regular meetings with investors should also be held and a professional meeting structure established. The frequency, duration, content of the meeting and participants must be defined. In order to conduct these meetings efficiently, detailed preparation and proactive communication are necessary. You can find out how investor meetings can be adequately prepared and what is particularly important here in our Whitepaper After-Investment Strategy.

Determine the liquidity run rate

The liquidity run rate is the most important key figure for start-ups in order to recognize impending scenarios such as insolvency in good time and to take countermeasures. For this purpose, detailed analyses of the liquidity development as well as a resilient forecast should be introduced. You can learn more about what needs to be considered when determining the liquidity run rate in our Whitepaper After-Investment Strategy.

Manage the liquidity burn-rate

In addition to determining the liquidity run rate, the consumption of liquidity should also be actively managed in order to be able to respond adequately to different scenarios. To this end, measures must be developed that primarily target operating expenses as well as working capital. More details on the management of liquidity can be found in our Whitepaper After-Investment Strategy.

Track financial performance based on KPIs

In order to present the financial performance of the start-up to management and investors in a transparent and comprehensible manner, it is necessary to define relevant KPIs. Based on the KPIs, the company can be managed efficiently and investors and management can be informed. If you would like to learn how to define meaningful KPIs and manage your company on this basis, download our Whitepaper After-Investment Strategy now.

Secure follow-up financing

To ensure that new capital can be raised before cash and cash equivalents are completely depleted, follow-up financing must be secured in time. To secure financing, measures must be initiated to prepare the company for approaching investors. In this context, the proactive management of investor relations is particularly necessary to ensure an overview of all relevant investor relations and to use them efficiently.

Learn how to optimally prepare yourself and your start-up for the next fundraising round in our Whitepaper After-Investment Strategy.