I recently had the pleasure of meeting Melissa Lombard at Gary Hoover's open house for the iSchool (U.T. Austin's Information School, a top-ranked program for it's kind in the nation). Gary is one of my favorite people in Austin, and he is generously serving as Entrepreneur-in-Residence for the iSchool after doing so a few years ago for McCombs (U.T. Austin's Business School). He invited "friends of Gary" to attend and Melissa was there with her husband. Melissa told me about her 5-year project to have coffee with 260 strangers and live this mantra:
As an entrepreneur, I fostered an unusual communication practice with our investors and advisors. I treated them as I would have wanted to be treated if I were in their shoes. This is the Golden Rule in action.
You need to have empathy for those that you raise money from. They aren't the "man in the arena" (one of my favorite quotes from Theodore Roosevelt), but they can be very supportive - should you choose to treat them as part of your extended team. They are putting their money (if they are angel investors) - or their investors' money (as is the case for venture capitalists) - into your venture and you should treat that capital as if it were your own. And if it were your own capital ask yourself, "What kind of updates would I want?" My guess is you would want to always know how the business is doing and how you could help the business - and therefore help your investment. Part of the thrill of investing is to see the entrepreneur succeed - both changing their life and many other people's lives in the process. Investors enjoy telling their friends - other investors and family - about the success of your business. The journey is more important than any return they get (although to be clear they don't want to lose either their money or their investors' money). The more they help you, the more they live vicariously through you - and their fingerprints are all over your business. This is called a "helper's high" by my good friend and CEO coach, Kirk Dando (you can read more about Kirk and the value of CEO coaches in my Lucky7 post about the 7 lessons learned on the journey from founder to CEO).