An investor update is a monthly or quarterly communication between you and your investors, typically focusing on highlights, financials, team updates, customer wins, and core metrics. Sharing these updates helps build trust and confidence with your investors, making it more likely that they will participate in your next round or refer you to other potential investors. Informed investors are also better equipped to support your company through any challenges that may come up, so it’s important that you maintain regular communication with them.
Founders often struggle to balance the amount of detail and time it takes to create an investor update with their busy schedules, but they can be an important tool for managing expectations and building a strong relationship with your investors. In fact, we’ve found that companies who regularly send their investors updates are twice as likely to raise follow on funding.
When it comes to writing an investor update, the key is to be honest. Rather than shying away from the difficult topics, it’s best to lean towards transparency and ensure that your updates are consistent and easy to read by using clear headlines and a standard format. Keeping a schedule for sending your updates is also important, as it shows that you are organized and dedicated to ensuring that your investors are well informed.
With Carta, you can send your investor updates directly to your stakeholders through the Communications Center. With access to best-practice templates, and the ability to import a one-time snapshot of your cap table, valuation, and burn rate from within your accounting software, you can easily keep your investors and stakeholders up to date on what’s happening at your business.
