A regular investor update is a powerful communication tool to share company performance, milestones, and financials with your investors. Whether you are an early-stage founder or a growth/late stage company, it’s critical to keep your investors informed and up-to-date, and a great way to maintain transparency and confidence.
Investor updates can take many forms, including emails, PDF documents, presentations, meetings, and videos. However, they should all be written with the same consistent structure to meet the expectations of your investors. Keeping your investors informed is about much more than data dumps and financial acrobatics—it’s about building trust, deepening transparency, and strengthening relationships with people who care about your business success.
Your investors want to see your progress, but they also want to know when you’re having a difficult time. It’s not as easy to write about the lowlights of a company as it is the highlights, but it’s important for your investors to have a complete picture of your business.
When you share high points of your company, it encourages your current investors to contribute additional capital and helps attract potential new investors. In the same vein, sharing the challenges your company is facing gives your investors the opportunity to step in and help guide you through tough times. And in the tightly knit world of venture capital, one positive recommendation from an investor can make all the difference in attracting follow-on funding.