An investor update is a brief report on the state of your business to investors, typically shared via email or as a PDF/deck. These updates are a way to communicate with your investors and build trust through transparency.
Investors want to know what’s happening at your company, from the big wins and losses to the details about how you’re growing. The best investor updates are honest, concise, and informative. Investors are looking for signs of progress that can help them determine if your startup is on the right trajectory to succeed. This could include customer wins, key performance indicators (KPIs), and financial metrics, like burn rate.
In addition to the above, investors want to know your key milestones, how you’re progressing towards them, and if there are any concerns. The best way to keep your investors informed and updated is by sending them regular investor updates, preferably at the same time every month.
Depending on the stage of your business, these updates may differ in length and detail. For example, a later-stage company might send an investor update once a week, whereas an early-stage startup may send an investor update once per month.
In addition to being informative, investor updates are an opportunity to ask for help. If you’re struggling with an operational or tactical challenge, your investors will likely be able to provide guidance or connections. Similarly, if you need to hire a new team member, your investors may be able to refer you to candidates from their network.