Investor updates are key communication tools for startup founders. They serve as a way to communicate momentum, gain trust and support from investors, and demonstrate transparency over time. Ultimately, the goal is to build relationships with investors that will last throughout your company’s lifecycle and beyond.
Investors look for a variety of information in these updates, depending on their stage and relationship with your startup. Regardless, you want to provide the most important information upfront, including milestones achieved, key metrics, financial performance (e.g., runway / burn rate), and any other relevant details that may impact the investment decision.
It is also important to be transparent about challenges, especially when addressing a difficult milestone. Being honest about challenges allows investors to help guide your startup through tough times and can also lead to new opportunities for collaboration or referrals.
It is best to send these updates on a consistent monthly cadence, and include both quantitative and qualitative insights. Visualizations like graphs are helpful tools to quickly convey trends and comparisons. Ideally, these updates are sent before meetings with investors to ensure that conversations are informed and productive.