An investor update is an important communication tool for entrepreneurs to maintain transparency with investors, building trust and confidence in the company. Whether written as presentations, Word documents, or emails, updates are typically shared at a monthly cadence and provide a snapshot of the company’s performance. Investors look for key takeaways including financial metrics, upcoming milestones, and growth initiatives. In addition, sharing openly about challenges is critical to building trust, with the potential to inspire investors to offer support and guidance.
When crafting an investor update, be sure to include a section outlining key takeaways from the month (or whatever period you choose). This will give your investors a sense of what’s happening and allow them to quickly find information of interest. Additionally, it’s a great opportunity to highlight positive developments, such as strong growth, major customer wins, or new hires who are adding value.
While it’s important to share your successes, it’s equally crucial to be open about any challenges that you are facing. Taking the time to address these issues can foster trust and build a culture of collaboration, demonstrating that your team is working together to overcome obstacles. Additionally, it can provide an opportunity to ask for help (via a “asks” section) if needed. Finally, it’s also a good idea to thank specific investors for their help or investment in the company, as this demonstrates genuine appreciation and motivates others to step up their involvement.