A well-crafted investor update can be a powerful tool to strengthen relationships with investors and build trust. When crafted intentionally, investor updates can highlight the positive momentum of a business and offer transparency around key metrics.
While the frequency of an investor update will depend on your stage of growth and relationship with your investors, it is important to make it a regular occurrence. Often, if investors know they can expect an investor update on a set schedule, they will be more likely to read it and keep track of the progress being made.
Investor updates can be presented as a presentation, Word document, or email, but whatever format you choose, it is important to stick with consistency. Creating a consistent investor update template will allow investors to easily recognize and locate the information they are most interested in.
For example, a seed-stage SaaS company recently shared an investor update that was structured into four clear sections: highlights, lowlights, asks, and key metrics. The highlights section celebrated milestones like surpassing 1,000 users, while the lowlights section candidly addressed challenges such as slower-than-expected customer acquisition rates. The asks section highlighted specific requests that the company needed from its investors, such as introductions to new potential customers and advice on scaling operations.
Finally, the key metrics section provided transparency about the company’s performance by displaying data from key sources such as monthly recurring revenue, churn rate, and customer lifetime value. This information is especially helpful to investors when they are evaluating opportunities to commit follow-on capital or other types of investment.