      SaaStr · 2025-04-24
      · 406d
    

Best Practices for Communicating Bad News to Investors and Stakeholders

Jason Lemkin advises SaaS founders on how to properly handle and communicate bad news to investors, board members, and key stakeholders. Rather than hiding problems, founders should proactively share challenges, provide context, and present mitigation plans to maintain confidence. Transparent and consistent communication is critical to navigating difficult periods without losing investor support.

4 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Billion Dollar Exit Rate

3 of 6%

billion+ valuation

Early stage VC portfolio companies from author's investments

Investor Update Deadline

10thday of month

maximum delay

Critical timing for founder communications during difficult periods

Minimum Stakeholder Meeting Frequency

4times per year

minimum

Quarterly in-person or Zoom meetings with key investors and board members

Successful Exit Rate

5 of 6%

unicorn conversion

Early stage VC portfolio companies from author's investments