Getting financials from start-ups 'like herding cats', so transparent businesses can stand out: SCMP Game Changers

Start-up founders should be as transparent as possible to keep backers on side for future investment, entrepreneurs and venture capitalists told an audience at the third SCMP Game Changers Forum.

James Giancotti, an Australian former investment banker and chief executive officer for start-up rating system Oddup, said he set a strict schedule to update his company’s investors to maintain their trust.

“For an angel investor, getting a report from start-ups is like herding cats, it just doesn’t happen” he said.

“Once you have [investors] on board, keep them notified, because when you need to raise your second round, it’s easier if you set that expectation the whole way.”

Gerald Eder, founder of financial comparison platform CompareAsiaGroup.com said maintaining a good relationship with current investors would save time and resources when looking for the next round of investment as funding rounds can distract from the core business.

In April, the company raised US$40 million in a financing round led by Goldman Sachs Investment Partners and including major local and international investors such as Jardine Pacific, ACE & Company, and Mark Pincus, founder of internet gaming firm Zynga.