An investor update is a document that covers a wide range of topics including the company’s key performance indicators, recent wins and losses, and future plans. It’s typically shared monthly or quarterly via email but can be delivered in any format that’s convenient for the recipient.
Creating an effective investor update takes time and effort. However, once you have the structure in place it becomes a powerful tool that helps maintain transparency and builds trust. It also increases the odds of raising follow on capital. In fact, studies have shown that investors are twice as likely to invest in a company that sends consistent updates.
In order to ensure your investor update is meaningful, it’s important that you put yourself in your investors shoes. This will help you understand what information they’re most interested in and where the most value is.
The first section of the investor update should be an overview of the business. Share the main metrics you track, how they’re trending, and what you plan to do in the upcoming month (or quarter).
This is also an excellent opportunity to highlight any new hires or key contributions. Investors want to hear about the positive changes in your team, and it’s a great way to recognize individual employees. Also, this is the perfect time to talk about any recent challenges you’re facing. Although it can be intimidating to share the bad news, it’s ultimately better to communicate than to keep things a secret.
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