An investor update is a monthly (or quarterly) report that shares progress on key metrics, business challenges, and future plans. Oftentimes, investors will want to hear more details on the performance of their investment, so it’s important to include these in each update. It’s also important to be honest about the good and bad parts of your business, as this builds trust and can motivate your investors to help you out when you need it most.
The most successful investor updates are simple to create and share, with a consistent cadence. Use templates for structure, but don’t forget to personalize each one with a unique introduction. Include real-time charts & data to add a visual impact. Use the update to celebrate team successes and milestones, as well as to showcase authentic wins and losses. Finally, make sure to ask for help from your investors in the “asks” section — this could be a referral for a new customer or employee, or it could be a request for access to their network of other investors.
Investors are typically invested in a handful of other startups, so it’s important to be timely with your investor updates. This will motivate them to prioritize your requests in their portfolio. Keep in mind, though, that it’s not the right fit for every company to use a template or outsource the creation of their investor updates to a third party. Instead, it may be more effective to invest in a purpose-built software tool that helps you save time with automation, provides engagement tracking, and supports real-time collaboration.