Getting funded is a major milestone for any startup founder. It means that you have convinced investors to believe in your vision and support your growth. However, it also comes with a lot of responsibilities and expectations. As a founder, you need to be aware of what your post funding duties are and how to fulfill them effectively. Here are some of the most important post funding responsibilities of founders:
Communicate with your investors
One of the first things you need to do after getting funded is to establish a clear and regular communication channel with your investors. You need to keep them updated on your progress, challenges, achievements, and plans. You also need to listen to their feedback, advice, and suggestions. Investors are not just sources of money; they are also valuable partners who can help you grow your business and avoid pitfalls. You should treat them with respect and transparency and make them feel involved and valued. You can communicate with your investors through various means, such as email newsletters, monthly reports, quarterly meetings, phone calls, or online platforms.
Manage your finances
Another crucial post funding responsibility of founders is to manage your finances wisely. Have a realistic and detailed budget that outlines how you will spend your funds and what your expected return on investment is. Track your cash flow, revenue, expenses, and profitability. Avoid overspending, wastage, or fraud. You also need to comply with the legal and tax requirements of your jurisdiction. You should hire a professional accountant or CFO to help you with your financial management.
Build your team
As your startup grows, you will need to hire more people to help you execute your vision. Building your team is one of the most important and challenging post funding responsibilities of founders. Find the right talent, skills, and fit for your company culture. You may have to offer competitive compensation, benefits, and incentives to retain top talent. Provide training, mentoring, and feedback. Foster a positive, collaborative, and productive work environment. Delegate tasks, empower your employees, and hold them accountable. You should use various tools and platforms to help you with your hiring, onboarding, and retention processes.
Deliver value to your customers
Ultimately, the success of your startup depends on how well you deliver value to your customers. You will have to understand your target market, their needs, preferences, and pain points. Create a unique value proposition, a compelling product or service, and a strong brand identity. Test, validate, and iterate your product or service based on customer feedback and data. Acquire, retain, and delight your customers. You also need to measure and improve your customer satisfaction, loyalty, and advocacy. You should use various tools and methods to help you with your customer development, marketing, and sales strategies4.
Scale your business
The ultimate goal of getting funded is to scale your business and achieve your growth objectives. Scaling your business is one of the most difficult and rewarding post funding responsibilities of founders. You need to have a clear and ambitious vision, a scalable business model, and a growth strategy. It is important to identify and leverage your key growth drivers, such as product-market fit, network effects, viral loops, or partnerships. Plan ahead on how to overcome the common challenges of scaling, such as operational inefficiencies, quality issues, or cultural clashes. And, all of this while preparing for the next stage of funding, such as Series A, B, or C, or an exit, such as an acquisition or an IPO. You should seek guidance and support from your mentors, advisors, and peers to help you with your scaling journey.
Conclusion
Getting funded is not the end of the road for startup founders, it is the beginning of a new and exciting journey. As a founder, you need to be aware of your post funding responsibilities and how to fulfill them effectively. You need to communicate with your investors, manage your finances, build your team, deliver value to your customers, and scale your business. By doing so, you will be able to achieve your vision and create a lasting impact in the world.
