Investor updates are an important communication between startups and investors to keep investors informed about the company’s progress. While investor updates vary depending on the industry, they generally abide by a similar format and cover key information such as recent wins/losses, financials, team, and core metrics.
Highlight your company’s accomplishments, big or small, during the month (or whatever period you choose to cover). This may include a record growth rate, new hires, or a milestone achieved in the company’s product development. Remember to include context so that investors can better understand the significance of these achievements.
Similarly, you’ll also want to share any challenges faced during the month. While it may feel counterproductive to share negative news, this is actually an opportunity to build trust and engender support. Moreover, failing to provide transparent communication can ultimately damage your relationship with investors, making it harder for them to help when you need their assistance.
Investors need to be able to see your company’s full financial picture. This will be easier if you stick to the same KPIs throughout your updates, so that investors can easily compare performance over time. Additionally, consider adding visuals such as graphs or charts to your updates to make them more engaging. Lastly, don’t be afraid to ask for help if you need it. This could be anything from a referral to a talented COO, a lead for a potential sales opportunity, or a favor in the form of an introduction to an influential investor.
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