A frequent investor update is an important communication tool for preserving transparency and trust with investors. It’s often a document that covers recent wins, economics, and team updates as well as core metrics like revenue, customer acquisition costs, and churn rates.
When preparing an investor update, it’s essential to strike a balance between celebrating achievements and candidly addressing setbacks. Highlighting successes in the overview section builds trust and confidence, while discussing losses respectfully and productively demonstrates accountability. This approach builds strong relationships with investors and encourages long-term collaboration.
The majority of investor updates (81% to be exact) feature a dedicated “Highlights” section that celebrates significant milestones and achievements. These can be small victories, such as surpassing 1,000 active users, or major milestones, such as a successful product launch. It’s also important to include key metrics in this section, as these provide a measure of performance and demonstrate progress toward goals.
Providing detailed information about team changes (47%) is another critical component of investor updates. This includes highlighting key hires, promotions, and organizational shifts. It’s also helpful to add any fundraising details, as this demonstrates transparency in your financial strategy.
Ultimately, a compelling investor update is one that is structured into four clear sections: highlights, lowlights, asks, and key metrics. This structure provides a concise and clear overview of the business, allowing investors to easily find the information they need to make informed decisions about their investment. By following this simple guide, you can deliver first-rate investor updates that meet the needs of your investors.