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  • Rajeev Manjrekar

FAQ # 7 - How do we manage our investors?

Advice - Ventures who have raised funding from Financial Institutions, Equity Funds, Angel Investors or even family and friends will have to walk a more cautious path. Founders have more responsibility when they are doing business with someone else's money. Ultimately investors are your business partners and are there to support you. I would suggest you should immediately...

1. Coordinate with your investors to restructure your facilities

2. Give them confidence with revised business plan for survival

3. Growth plans should be deferred with mutual consent

4. Any pivots should be discussed and approved by all stakeholders especially your investors

5. Communicate on regular basis and do not hide any facts

6. This is no time to discuss exit plans, therefore do not let your discussions lead to any arguments at any cost


If your investors ask you to temporarily pivot for some time, do it without any hesitation if they are ready to support. You may return to your original business plan once the things are under control. You have to live to fight another day with your competitors and trust me your existing investors are your best well wishers. Many investors I know, are helping their portfolio startups, saying no to fresh investments.

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