Whether you’re raising funds from angel investors or venture capitalists, investor updates are an essential part of building and maintaining healthy investor relationships. Investors want to hear about your company’s progress, successes, and challenges so they can make informed investment decisions. They also want to feel a sense of ownership in the business and be able to tell their friends and family about it. But writing an effective investor update can be challenging, especially when you’re underperforming or facing a setback.
Ideally, you’ll write and send investor updates once a month (or quarter) but they can be more or less frequent. Whatever schedule you choose, it’s important to stick with it. If you skip an update during a tough time, it can send the message that you don’t value your relationship with them.
Investor updates should be simple and focused. Start with a summary of the key highlights since your last update—these can be anything from new customer wins to team hires. Be sure to include a brief summary of any financial performance as well. Then, provide an overview of your current situation and highlight any areas you need help with.
Investors like to see that you’re working hard to resolve any challenges. They’re also interested in hearing about any new initiatives that will drive long-term growth. And finally, they want to know how they can best support you. Investors can help with a variety of things, including introducing you to new customers, hiring candidates for key roles, or making introductions to other investors that may be helpful.
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