An investor update is a key way for startup founders to keep their investors informed on the company’s progress. It’s important to be transparent with your investors because they are risking their own capital for your venture, which means that they have a vested interest in the company’s success.
The most important thing to remember when writing investor updates is to be consistent. If your investors can count on you to send an update every month, they will be able to rely on the information contained in each update. If you change the metrics that you share from month to month, it can cause confusion and break trust. Generally speaking, it’s best to stick with the same set of metrics every update.
When you write your update, make sure to start off with an overview of the business. This will include things like revenue, growth, milestones, team members and a summary of any major achievements that happened during the month. It’s also a good idea to include a section that includes your key performance indicators and a summary of how they have been trending since the last update.
It’s also important to be honest about challenges that the company is facing. Whether it’s a sales challenge, a product problem or any other issue, be sure to provide your investors with an honest assessment of how the business is performing. This will allow them to help you if necessary and will ensure that your investors are well aware of the challenges facing the company in case they decide to invest in a follow-on round.