When you raise money from investors, it’s your job to keep them informed of what’s going on with the company that they put their capital behind. A great way to do that is by sending investor updates on a regular basis. These are a critical part of the fundraising process and can deepen transparency and trust over time. But not all investor updates are created equal. Some templates fall short when it comes to efficiency, engagement tracking, and real-time collaboration. That’s where purpose-built software comes in.
The goal of an investor update is to provide investors with detailed information about the business’s financial performance, operational milestones, and market trends. It’s typically delivered via email and may also include presentations, videos, or meetings. These updates are most frequently shared by early-stage startup founders on a monthly basis, and growth or late-stage companies on a quarterly basis.
What to Include in an Investor Update
While the content of an investor update can vary, it should always be professional and meet the expectations of your audience. Generally speaking, investor updates should be concise, covering the most important metrics and developments. It’s also important to be mindful that your investors may already have multiple investor updates from other portfolio companies. That’s why it’s crucial to provide clear highlights to avoid overwhelming them.
Finally, don’t forget that your investors want to see you succeed. So don’t hesitate to share major wins and accomplishments, as well as any challenges that you’re working through. This will give them opportunities to leverage their own network, experience, and expertise to help your company thrive.