Investor updates give investors a snapshot of the company at a regular cadence. They provide a platform to share key metrics, challenges, and upcoming milestones. They also serve as a bat signal for things you need help with (via the “asks” section).
Investors don’t just sign checks; they invest their time and connections to support their portfolio companies. This means that they want to see your startup succeed. Investors will only be able to do this for you, though, if they are informed about the business.
While there are many different types of investor updates, most abide by the same general principles. They should be clear and concise, but not so short that they are lacking in detail. They should include both highlights and lowlights, and be prepared to address any questions or concerns that your investors might have.
The frequency of these updates depends on your needs, but try to be consistent. For example, if you need a lot of help from your investors, it might make sense to send them updates more frequently. If you are on solid ground and don’t require any assistance from your investors, then it might be better to stick to a monthly update schedule.
The most important thing is to set a schedule and stick to it. If you skip an update, it will create doubt in your investors’ minds. It’s also a good idea to set internal deadlines for these updates. This way, you can ensure consistency and that the process is always top of mind. Lastly, consider using purpose-built software for these updates that offers features like engagement tracking, real-time collaboration, and data-driven reports.