An investor update is an emailed status report that shares details on your startup’s growth trajectory. Providing regular updates keeps investors informed and engaged, while giving them opportunities to use their expertise, networks, and resources to help your business take flight. Founders typically share investor updates with their core investor list, and may send them to additional stakeholders like friends and family.
While it can be tempting to only highlight the good news, being honest is crucial. This builds trust and allows investors to see how you’re tackling challenges as they arise. Investors want to be able to help your company succeed, and sharing transparent information will make them more likely to pitch in when needed.
Effective investor updates are concise, but provide valuable insight into key milestones and metrics. They begin with a friendly introduction that offers a quick TL;DR and explains the purpose of the email. Then they break down the results of a quarter or month into highlights, lowlights, asks, and key metrics. Sharing this information enables investors to quickly grasp the most important aspects of your business, and also helps them compare performance from one update to another.
Depending on the stage of your company, you may choose to include information on your financial numbers or key performance indicators (KPIs). It’s also helpful to share team developments in your investor update. This gives investors a clear sense of your leadership’s direction and provides them with an opportunity to support you in finding the right talent.
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