Investor updates are a key communication tool for maintaining transparency and building trust. They help investors stay informed and engaged with a startup’s progress, while also providing them opportunities to help. This two-way street is a great way for a startup to leverage their investors’ experience, expertise, and networks.
Startup founders typically email these updates to their angel or VC investors, as well as other close supporters like family and friends. Often, these updates are sent at a monthly or quarterly cadence. Using a consistent sending schedule allows investors to plan ahead and keep the most important information top of mind.
A good investor update includes sections on recent wins, financials, team updates, and core metrics. While it can be easy to focus on the positive, it’s important to share any challenges a startup is facing as well. This can be difficult for entrepreneurs to do, but avoiding transparency risks alienating investors and jeopardizing future fundraising rounds.
Highlighting a section on any measurable achievements is crucial, as it ensures that investors can easily identify key trends and milestones. Including this section is especially beneficial for startups that are in the early stages of their development. Similarly, highlighting any key new hires or promotions helps foster confidence in leadership and growth.
The best investor updates are clear, concise, and use visualizations where necessary to convey complex data quickly. They also tend to be a bit more candid about the company’s challenges than other communications.
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