An investor update is a concise, structured communication that keeps stakeholders informed of key components of your business. These include recent wins and setbacks, financial performance, and team developments. By sharing critical metrics and providing context, investor updates establish credibility and foster trust with investors. In addition, they ensure that investors understand your company’s trajectory and support a collaborative problem-solving culture.
Whether you’re an early-stage founder preparing to send your first investor update or a growth-stage company looking to streamline your reporting process, the best way to communicate with investors is via email. This will allow you to send updates at a cadence that’s comfortable for your team, while also allowing you to easily include additional information (such as supplemental data and slides) in the event of a board meeting or a more formal presentation.
Most investor updates begin with a brief overview of the previous month, offering context to highlight any major changes or trends. A significant change could be a significant shift in revenue, a sudden drop in the average customer lifetime value, or the decision to discontinue a product due to low market demand. By communicating these highlights in the update, you create a sense of momentum and urgency for the rest of the report.
Investors are evaluating many different startups on a regular basis, and the quality of your investor updates will be a major determinant of their investment decisions. By providing clear, consistent, and transparent investor updates, you’ll show your investors that you are committed to building a great startup.