The investor update is the regular communication that shares updates on your startup’s progress to the investors who have invested in you. Whether you’re sending this to your venture capital firm or a handful of angel investors who have helped you raise your seed round, writing strong investor updates helps you build trust and deepen transparency. Getting this right can position you to leverage their experience, networks, and even capital to help your business grow.
Pick a schedule and stick to it
The best way to send effective investor updates is by being consistent. This ensures that investors receive your updates on a set day every month, which gives them a predictable picture of your company’s growth. Additionally, sticking to a schedule can also make it easier for you to gather the information necessary to complete your update.
Start with a brief introduction
The first part of your investor update should cover what went well in the previous month. This could include a new product release, customer acquisition numbers, a record growth rate, team kudos (like big promotions or new hires), product shipments, or other major milestones. If you’re able to, try to highlight any specific successes, as this can make your investors feel more involved in your company.
Next, share your key metrics and how they’re trending. The exact metrics you’ll want to include here will vary from investor to investor, but a good place to start is by listing out your most important KPIs, like monthly recurring revenue, growth rate, and churn rate.