Investor updates are a key communication piece for any early-stage startup. They help keep investors engaged and informed while enabling them to use their experience, network, and resources to support the company as it builds. Founders often send these updates out monthly or quarterly to their angel and seed investors.
An investor update is a summary of the business’s recent performance, and includes several key metrics and a call-to-action for investors to support the company moving forward. The structure of these updates can vary significantly, but the vast majority include four main sections: Overview, Performance, Economics, and Needs.
The first section of an investor update provides a quick overview of the business’s performance over the past month (or whatever period you choose to focus on). Share a few key metrics that are most important to your investors, like revenue, growth rate, new customers, or net new MRR. Make sure to add some context for these metrics, so investors understand why a particular figure may be increasing or decreasing, and how it might be trending over time.
Next, highlight any major wins and accomplishments from the previous month. This could be a record growth rate, an exciting product release, or a significant milestone for the team. It’s also a great opportunity to highlight any challenges the company has faced and how they’re working to overcome them. Finally, it’s important to highlight any specific areas where you’re seeking help from your investors, whether that be through additional funding or a referral to a promising candidate for an open position.
About the Author
