Investor updates are a powerful tool to keep investors engaged with your startup. They force founders to take time each month for reflection and self-audit while simultaneously providing an opportunity to request help from your investors. If you don’t take the time to send out updates, your investors may lose interest in your business and are less likely to assist you when you need them most.
The best investor updates follow a consistent format that can be easily repeated. Most templates include an intro, highlights, lowlights, metrics, and asks. The format can vary depending on your relationship with your investors, but you should always include a personal introduction to recognize individual contributions and share authentic wins. The highlight section is where you can list key things that went right in the past month, like new customers onboarded, partnership agreements forged, or product improvements made. A bulleted list or table often works well here, especially if you have multiple highlights to communicate.
If you had a difficult month, don’t be afraid to let your investors know. Many entrepreneurs shy away from sharing negative news because they fear the reaction of their investors, but professional investors have seen it all and will understand your challenges. Plus, keeping a line of communication open will allow them to step in to provide support or introduce you to their networks.
It can be challenging to gather the information for your first investor update, so it’s important to make a habit of doing them consistently. Once you have a system in place for collecting the data, the process of writing the updates will become easier each month.