Investor updates are a critical piece of your fundraising communication strategy that help you maintain transparency, build trust and ultimately raise capital more effectively. They typically include recent wins and losses, financials, team updates, customer wins, core metrics, and a request for help. Having regular conversations with your investors can double the likelihood of receiving follow on funding.
When your investors have a clear understanding of the current state of your business, they’re better equipped to use their experience, network and resources to support you. Investor updates provide a platform for you to step out of your day-to-day execution and reflect on the business on a high level at a consistent cadence.
The investor update outline can be as simple or complex as you like, but it should always include an overview section, a performance/economics section, and a needs/asks section. The overview section should start with a quick summary of the company health, including key metrics like daily active users or recurring revenue. It should also cover a couple of highpoints that happened during the month, whether it be new team hires, new customer wins or major milestones. Finally, the last paragraph should include any lowpoints (e.g. lost deal, slipping performance on a critical metric).
The final section of the investor update should be a call to action. This could be a request for help such as finding a COO, identifying a more reliable vendor or any other operational or tactical issue that you want your investors to help with. Having a regular conversation with your investors is one of the best ways to identify and tackle these issues before they become a bigger problem.