When I talk to angel investors, the most common complaint I hear is that the CEO’s of the companies they invest in do not provide regular status reports. And most provide no formal reports at all, even though they have a moral, legal, and fiduciary responsibility to do so.CEO not reporting to investors?
The question is, why? Is it their intent to mislead? Are they lazy? Are they hiding something?
I don’t think it is any of those things. Having had the opportunity to sit on both sides of the table, as a CEO of a privately funded company and later, as an angel investor, I would boil it down to four main issues:
1. Waiting for good news. For most companies, the good news is just another day or another week away. And even when some good news finally arrives, there is some even better news another day or another week away. So (thinks the CEO) why not wait and send the report when you can announce the new customer, the product release, and the astounding financial performance all at once? The problem is, the stars usually do not align that way and that perfect reporting moment never seems to arrive.
To read the full, original article click on this link: 4 reasons why CEO's don't report to their private investors.
Author: Lisa Hjorten