by Brian Smith, CEO, The Main Stage
So often as founders, we are consumed by the very business that keeps us up at night.
We are building. Hiring. Selling. Raising capital. Traveling to places we’ve never been. Making sacrifices in discretionary spending, time with family, and sometimes even our health. (That last one is for another blog.)
But in the intensity of building, something critical can quietly slip down the priority list:
Communication with the very people who made the journey possible — our investors.
Over the years, I’ve heard the same story repeated by high-net-worth individuals, institutional investors, family offices, venture capitalists, and even friends and family who wrote early checks.
They were excited when they invested.
They felt important.
They believed in the founder.
And then — silence.
Suddenly they were just one name in a cap table. Months would go by without updates. Emails unanswered. Calls unreturned. One VC once told me they were ready to get on a plane and show up at a founder’s office after weeks of trying to get a response.
In many of these cases, the silence wasn’t malicious. It was avoidance. Things weren’t going as planned. Milestones were missed. Promises stretched.
But here’s what I learned long before I became a founder.
A Lesson From 2008
Early in my career in wealth management — around the time of the 2008 financial crisis — markets felt like they were imploding.
My branch manager asked me to take a walk with him around the office. Some advisors were on the phone. Some were out grabbing coffee or lunch with clients. A few, he joked, might have been hiding under their desks.
He said something that stuck with me:
“The worst thing you can do during times of turbulence is go silent.”
The advisors who stayed in touch — who made the calls, scheduled the lunches, showed up — would be remembered. Not just when markets recovered, but because they were present during uncertainty.
That lesson shaped how I worked with my clients.
What struck me most during those volatile months wasn’t the fear — it was the humanity. Clients who were losing money in the market would ask me how I was holding up. They understood volatility. They appreciated the communication.
They didn’t expect perfection.
They expected presence.
I have never forgotten that.
Founders Face the Same Test
Fast forward to today. I’ve raised capital for my own companies. I’ve also been an investor.
And I see the same dynamic play out repeatedly.
Investors understand that startups are long-duration investments. They know returns can take years. They expect ups and downs. They understand setbacks.
What they cannot tolerate — or at least won’t forget — is being left in the dark.
Unlike public markets, startup investments aren’t liquid. Investors can’t simply click a button and exit. Their capital is committed. That means communication isn’t a courtesy — it’s responsibility.
The journey will have highs and lows. The least an investor can expect is to know where the journey stands.
The Communication Gap
The numbers reinforce what many investors already feel.
Some industry research suggests that only about 16% of startups communicate quarterly with investors in a structured way. Other reports show that only around 10% of founders feel comfortable openly sharing struggles with their investors.
There’s also a striking perception gap:
Roughly 75% of founders believe they communicate adequately.
Only 58% of investors agree.
The gap isn’t always intention. It’s perception.
Many founders don’t intentionally avoid investors. They’re busy. Focused. In the trenches. It becomes easy to think, “If they need something, they’ll reach out.”
But most investors won’t.
Just like my clients during 2008, many investors are thoughtful. They understand you’re building. They don’t want to interfere. They trust you.
That trust should never be tested by silence.
And here’s something founders often underestimate:
An investor may never tell you they’re disappointed about the lack of updates.
They may simply choose not to reinvest next time.
Even the Investor Who Says “Don’t Worry About It”
I once had an investor tell me:
“Brian, I don’t read all your updates. Just let me know if I’m losing my money or when I might see a return. Otherwise, I trust you.”
My response was simple:
“I won’t stop sending them.”
Because I will take consistent communication any day over hearing, “I wish I had heard from you more.”
Communication isn’t just about delivering good news. It’s about reinforcing trust. It’s about reminding your investors that they didn’t just invest in a product — they invested in you.
And leadership communicates.
Especially when it’s uncomfortable.
Why We Built The Main Stage
When my co-founders and I began building The Main Stage, we weren’t just thinking about fundraising efficiency. We were thinking about continuity.
Yes, storytelling helps you raise capital.
But ongoing storytelling builds investor relationships.
A startup evolves constantly — wins, setbacks, new hires, product releases, strategic shifts. Investors should have a clear window into that evolution. Not because they demand control, but because they deserve transparency.
Communication shouldn’t rely solely on emails that can get buried or lost. It shouldn’t depend on whether someone feels comfortable sharing hard news that month.
It should be structured. Consistent. Intentional.
Not reactive. Proactive.
In the End, It’s Simple
Founders are busy. The demands are relentless. The pressure is real.
But your lifeline is your investors — whether they are friends and family, high-net-worth individuals, institutions, family offices, or venture firms.
People invest in people.
And people remember how you make them feel during uncertainty.
They remember whether you showed up.
They remember whether you called.
They remember whether you communicated.
Investors don’t expect perfection.
They expect honesty.
They expect presence.
They expect leadership.
And as Richard Branson once said:
“Communication is the most important skill any leader can possess.”
Silence is not a strategy.
Communication is.
blog.themainstage.com 
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