A great investor update keeps your investors in the know and gives them a glimpse into your business progress. They’re a way to keep your investors engaged in the growth of your company, and allow you to send a bat signal for things that you need help on via an “asks” section. Investor updates can vary by industry, but most abide by the same principles:
In general, investor updates should be succinct and navigable. Investors are looking for a snapshot of your company’s performance, including key metrics such as recurring revenue (MRR) and growth rate, net new MRR, churn rate, and growth rate, as well as your financials (burn rate, cash runway, etc). Generally, you should aim to share at least 2-3 of these metrics in each update.
It’s also a good idea to include major milestones and accomplishments, as well as a brief overview of any other notable news that’s happened during the month. Lastly, be sure to highlight your most important takeaways at the top of your update. Investors can then scan for the information that matters most to them.
Investors are in this for the long haul and want to support your growth and success. However, that won’t happen if they don’t know what you’re going through, so make it a priority to deliver transparent investor updates on a consistent cadence. By providing this feedback, you’ll create a trusting relationship and set yourself up for success moving forward.
About the Author
