An investor update is a report that startup founders send out at regular intervals to the people who have invested in their company. These updates are a key part of building trust and engagement with investors, and they provide valuable insight into the company’s progress that can help support growth and strategic decisions.
When written well, these reports are a way to communicate the company’s successes and milestones to its investors. However, it is important for founders to be transparent about their challenges as well. By openly communicating challenges, investors will have an opportunity to offer advice and resources to the startup.
The best investor updates are pithy and clear, using concise language to highlight the most important metrics, milestones, and strategic context. They are typically sent out on a monthly cadence, either at the end of the month or at the beginning of the next one. A consistent sending schedule shows that you take the updates seriously and that you are on top of the information.
Investor updates should include a number of different categories, including key financial metrics, customer wins, and employee highlights. It is a good idea to include both highlights and lowlights in each month’s report, as it gives a balanced view of the company’s progress. It can also be helpful to include a section for “asks,” where you can provide a bat signal for areas where the company needs help or advice from its investors.
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