Whether it’s a pitch deck, Word document or email, an investor update is a vital tool for founders and the companies they lead. The goal of an investor update is to provide a clear snapshot of the company’s current state and future prospects. While a lot of information can be included, it’s important to focus on four key sections: overview, performance, economics and needs.
It’s worth mentioning that while it can be tempting to highlight all the good news, investors should also be aware of any challenges your business is facing. A failure to be honest with investors can quickly erode trust and make it much more difficult to raise follow on funding.
Investors need to feel like they know your business and can trust you with their money. Providing regular, concise updates will give them a clear picture of the company’s health and allow them to make informed decisions on their next investment.
While the structure of an investor update can vary, a consistent format will make it easier for you to write and send. Invest 15-30 minutes each month creating your investor report, and you’ll be well on your way to building strong, mutually beneficial relationships with your investors. To make the process easier, consider using an investor update template to get started. This will help you set a clear internal deadline and ensure that your reports are consistent each time. It will also make it easier to stay on track with your reporting by providing a checklist and structure to follow.
