Investor updates are a way for founders to share context on their business’s performance between board meetings. Usually sent monthly or quarterly, investor updates communicate key metrics to investors and highlight how the company is progressing against goals. Ideally, they are also used as a bat signal for areas where the founders would like to see help (via an “asks” section). The key to crafting compelling investor updates is consistency, measurable data, and a structured format.
As a general rule, investor updates should cover key milestones and highlights. They should include a summary of the previous month, and key metrics. The update should be a snapshot of the business. Investors need to understand how the company is performing and why metric trends are occurring.
Highlights should include customer wins, growth & traction of the product, and new logos added to the roster. It is important to be honest in investor updates and lay out any difficulties you are experiencing if necessary. Honesty demonstrates accountability and builds trust, and will often lead to helpful suggestions from investors.
Investors typically have several companies in their portfolio that they’ve invested in, and a timely, well-crafted investor update may motivate them to send clients or talent your way first. This is especially true if your investor has other investments in the same vertical or geographic area as yours. Providing regular updates will give your investors the motivation they need to be your ally rather than an adversary.