A “investor update” is a monthly report that shares key insights with investors. These updates are an essential part of any startup’s communication strategy as they help deepen transparency and trust with your most valued supporters. They can also help you maintain a competitive advantage by ensuring your investors are up-to-date on the latest news and metrics regarding your company’s progress.
The structure of an investor update varies, but the typical format includes an intro, highlights/lowlights, financials, team updates, and core metrics. Investors want to know how your business is growing and making an impact, so include data-driven metrics in your investor reports like your revenue growth rate or your customer retention percentage. Highlights can be anything from new product features to notable partnerships or acquisitions your startup is making. Lowlights, on the other hand, can be more tricky to share. Typically, startups have some bumps in the road, but it’s important to couch any bad news alongside consistent, positive growth.
Finally, make sure to end each investor update with a call-to-action section that asks your investors for any assistance they can provide. Often, investors have a network of their own, so they may be able to help your company find a new client, recruit a senior level hire, or even help with a key contract negotiation.
While a standard template can serve as an excellent starting point, using purpose-built software for your investor updates will streamline the process and provide additional functionality. With Visible, for example, you can easily track engagement with your investor updates and collaborate with colleagues in real time to draft and approve them.
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