When you raise investment capital, you bring on a new group of supporters who want to see your company succeed. It’s your job to keep them updated on the big wins, losses and plans that shape your future trajectory. Investor updates are one of the best ways to build trust and deepen transparency with your investors.
A good investor update should include the following sections:
A summary of key takeaways from the past month (or quarter, or year, depending on your investors’ preferences). Highlights should be clear and concise. It’s also helpful to include a few lowlights in each update. While it may seem counterintuitive to disclose a missed milestone or a request for help hiring a VP of Engineering, it’s important to give both sides of the story and show that your team is human.
Financial performance, including burn rate, as well as an assessment of your runway based on realistic forecasts. This is particularly important if you have been raising a round and have a limited amount of time before you run out of cash.
The key to writing a good investor update is consistency. A cadence of monthly updates is ideal for maintaining transparency and ensuring your investors are aligned on your company’s strategic initiatives. This requires careful planning and preparation, starting with understanding your investor’s expectations for updates, and establishing clear metrics for monitoring. A consistent format is also important, as it will make your investor updates easier to read and compare over time.