How to Write an Investor Update

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.

A Government Shutdown Causes Widespread Disruption

A government shutdown occurs when Congress fails to pass — and the President does not sign — budget legislation for the fiscal year. Annual funding appropriations are typically divided into 12 bills, and when a bill is not enacted in time to cover the whole year, non-essential departments shut down. During these times, some employees are furloughed, while those deemed “essential” work without pay. For example, during a 2013 shutdown, the Environmental Protection Agency stopped inspections of chemical factories and power plants, and Food and Drug Administration staff delayed routine food safety inspections. However, Social Security and Medicare benefits are guaranteed to continue, as is mail service. During long shutdowns, the FDA has even temporarily resumed some food inspections for high-risk products after a few weeks.

A Federal Shutdown Causes Widespread Disruption

Millions of Americans rely on federal services, from national parks to passport processing to IRS assistance to small business loans. When these services are disrupted, businesses suffer and workers lose paychecks. A prolonged lapse in federal funds also creates uncertainty in financial markets, which dampens investor confidence and may affect economic growth.

At a time when the United States is competing with strategic adversaries for global influence and authority, it’s vital that domestic political turmoil doesn’t damage America’s international reputation by conveying a sense of instability and inability to govern. Unfortunately, drawn-out funding gaps exacerbate these problems and provide fodder for adversaries to exploit the U.S. government and society for their own strategic purposes.