Investor updates are a key part of maintaining transparency and trust with investors. The goal is to give them a holistic view of your business, including highlights, lowlights, and core metrics. These are typically emailed once or twice per month but can also be sent via PDF, deck, or link.
The best way to create your investor update is to use a template that focuses on a clear structure with consistent sections, visuals, and personalization. It is a good idea to start by reviewing the previous month and gathering all of your key performance indicators (KPIs). Make sure that you have access to these from your sources of truth like accounting, marketing, CRM, and project management systems. It is important to share these metrics with context in order to help your investors understand any shifts in metric trends.
You should focus on sharing highlights that include everything from a new customer onboarded or partnership formed, to the number of product releases completed, and any notable wins in marketing, sales, or engineering. It is helpful to use bullet points and short sentences to keep your update navigable and easy for investors to skim.
It is also important to share the lowlights and challenges in your business. It is a normal part of the startup process to have rough patches and it is important that your investors know about these issues in order to better support you when needed. Ultimately, it is in the best interest of your investors to see your startup succeed, and consistent insights into your company can put them in a more helpful position when they are asked to make an introduction, recommend a new employee, or even invest further capital.
