A well-written investor update is a key tool for keeping investors informed of what’s going on in the business they have put their money into. It is a chance to share wins and losses, as well as what the company plans to do moving forward. This type of communication can help deepen transparency and trust, which are vital to the health of long-term investor relationships.
An investor update should have a few key sections, starting with an overview of the period in question (month or quarter). This is a chance to highlight some key takeaways, whether they be positive or negative, that you feel are important for investors to know. It is a good idea to keep this section short and concise, and to use clear paragraph breaks to make the update easy to navigate.
Next is a review of performance, covering financial metrics as well as growth and learnings. This can be a difficult area for startups, as it often requires pulling in data from multiple sources of truth like accounting software, CRMs, project management tools, and other databases. Taking the time to understand what information is most valuable for your investors, and who in your team has access to that data, can be an effective way to streamline this process.
Finally, an investor update is a great opportunity to share some kudos and shout outs for the team members who have been making a difference. It’s also a chance to send up a bat signal for help if there are any challenges that the company is facing, via an “asks” section.