How do I shake off needy investors?
Does the company have a board of directors? Are there any investor representatives on it? If there is a “lead” Investor with whom you have a good relationship, you might try having him act as your front man. Otherwise, you might try sending ALL your investors something like this:
“Dear NewCo Investors,
Given the unique circumstances of our company’s founding, we have been blessed with an amazing group of value-adding investors. In turn, we have established a virtually unprecedented communications program with our investors, including weekly reports, monthly in-person meetings, and frequent phone calls.
This has been a great boon for NewCo during our formative period, and we look forward to continuing our frequent and regular investor communications as we continue to grow. However, we have now come to a point where I need to be able to focus directly on running the business rather than spending nearly a full day a week on the phone with my wonderful investors.
Therefore, beginning this week, we will need to limit our investor communications to the weekly reports and monthly meetings. Of course, if anything urgent arises requiring your advice, I will be sure to reach out to you immediately. But otherwise, I respectfully ask your support in allowing me to dedicate my full time to enhancing the value of your investment.
Warmly, and with great appreciation for your support,
And from that point on, just don’t take his calls.
This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.