An investor update is a regular communication from a company to its investors that includes detailed information about financial performance, team changes, and new customer wins. It is an important way to maintain transparency and ensure that all stakeholders are on the same page about strategic initiatives. Investor updates can take many forms, including email, presentations, videos, or meetings. They are typically delivered on a monthly basis, but can be as frequent as every two weeks depending on the frequency of a company’s needs.
Investors are interested in hearing about the successes of their portfolio companies. However, it is equally important to share the challenges and setbacks that a business encounters as well. This is a critical piece of information that should not be omitted from any investor update because it will allow your investors to offer support and guidance when needed.
When preparing an investor update, it is helpful to use a template that will guide the company through the process. There are a number of investor update templates that can be found online, such as the one put together by Techstars or a fill-in-the-blank template from Founder Collective. These templates will help the founder quickly capture the key points to include in an investor update, such as a short overview of the current state of the company, key business metrics, upcoming milestones, major accomplishments, and asks for the company.
Providing regular investor updates can be a great way to tap into the expertise, network, and experience of your investors. Ultimately, this can help the company grow and thrive. By maintaining a line of communication with investors, the company can receive advice, guidance, introductions, and even additional funding.
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