A great investor update helps keep your investors informed about your company’s progress and gives them the insight they need to help you succeed. These updates are also a way to deepen transparency and trust—critical for long-term investor relationships. Investors are putting their own money and expertise into your business, so they expect you to be transparent about the good and bad of what you’re up to.
Whether you are raising your first round of funding or looking to raise more, a regular investor update is an essential part of any investor engagement strategy. Investors that are regularly updated about the progress of your startup are twice as likely to invest in a follow-on financing round than those who do not receive regular updates.
To write an effective investor update, you need to think about structure, format, and timing. Investor updates should be concise and easily navigable, with clear sections and short paragraphs. They should begin with a friendly introduction that gives a TL;DR of the key takeaways from the month (or quarter). You should also pick a schedule for writing these updates and stick to it. Investors know that startup founders are busy, but missing an update can send the wrong message about your company’s commitment to building a successful business.
Finally, you should include an “asks” section where you ask your investors for their support on specific things that your team needs. This could be anything from a new customer referral to an introduction to a strategic partner.