Investor updates are a chance for founders to step out of the day to day and reflect on their business at a high level. They can also serve as an opportunity to share accomplishments, challenges, and ask for help via a “asks” section. The best investor updates are transparent, honest and clear. They are the cornerstone of strong investor relationships.
The structure of an investor update can vary slightly depending on your investors and the level of detail you feel comfortable sharing. But generally the following is what a well written investor update should include:
Performance/KPIs
It’s important to keep in mind that your investors may be tracking different metrics than you are. If you’re using different definitions for metrics or reporting on them differently it can be confusing to your investors and potentially break trust. So try to keep your metrics consistent from month to month.
Accomplishments
Be sure to highlight any major accomplishments from the previous month (or quarter). This is a great way to show your investors that your company is growing and making progress towards achieving its goals.
Challenges
Finally, it’s critical to be open and honest about the challenges that your company is facing. This will demonstrate that you are being thoughtful about the company’s trajectory and your approach to solving its problem. It will also allow your investors to lend their experience and networks as needed.
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