Investor updates are a way for entrepreneurs to keep their investors informed about the business, share recent wins and losses, and communicate a few core metrics. They are typically shared via email, but can also be sent as a PDF, deck or link. Investors want to help their portfolio companies succeed, and consistent updates will provide them with the knowledge they need to be a helpful resource.
Investors are usually looking for a handful of core metrics in each update, including monthly recurring revenue, growth rate, net new customer retention (NRC), churn, and total spend on product development. Depending on the investor’s perspective, they may want to see more or less than that, but it is important to include a few key metrics that matter most to them.
The other core component of an investor update is highlighting what went well in the month or quarter (or whatever period you opt for) at your company. This can be anything from a big new customer won, to a product milestone, to a key team addition. This can be done in a bulleted list or table for brevity.
The last part of an investor update is an opportunity for founders to send a bat signal for things that they need help on via an “asks” section. This is a great way for entrepreneurs to step out of day to day execution and reflect on the business at a high level at a regular cadence.
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