Investors put money into your company because they want to see it grow and generate a return on their investment. The more they know about how you’re progressing, the better their decision making will be when it comes to committing follow on funding. That’s why it’s important to consistently send investor updates.
Investor update templates vary depending on the size and stage of your business, but most include four key sections: overview, performance, economics, and needs. The overall structure should be clear and easy to navigate. Investors are busy and don’t want to peruse overly long, complicated updates.
Start the overview section by providing a short, two paragraph synopsis of your company’s health. This is a great opportunity to share any new hires, company milestones, or product developments. Also, it’s a good idea to highlight any high points from the previous month — whether that be a significant increase in new customers or a new and improved feature that your users love.
Sharing lowpoints is another important part of your investor update. It’s rare that a month passes by without any bumps in the road, so it’s best to be upfront with investors about the challenges you’re facing. This allows your investors to help you resolve the problem. Plus, it helps build trust between you and your investors when you are honest about the problems your business is experiencing.