“Despite a lot of publicity and social media, number of sign-ups were modest,” reads one of the last monthly reports I sent to my VCs before my startup ceased to exist.
Like, I suspect, many other early-stage founders, I hated the monthly chore of writing a short report for investors.
Dr. Elgar Fleisch (Professor of Technology Management at University of St. Gallen) and Florian Schweitzer (a partner at VC firm btov), he writes “startups that submit regular, high-quality reports are shown by the statistics to be better investments than other startups.”
The research was based on analysis of hundreds of monthly startup reports submitted to btov Partners by portfolio companies out of its first two funds, which ran between 2006 to 2014.
“Hypotheses on the positive effects of monthly startup reports were tested, using several multivariate regressions,” write the paper’s authors.
Startups that submit regular, high-quality reports are shown by the statistics to be better investments than other startups.