An investor update is the primary tool that fuels and grows a startup’s relationship with its investors. These updates serve as a vehicle for communicating key metrics and milestones to investors at a cadence that suits the business’ growth journey.
Investors are looking for evidence that the company is progressing on its growth trajectory, and the quality of an investor update hinges on the clarity with which it presents this information. Depending on the stage of the company, this could mean anything from signs of product-market fit to financial metrics such as cash runway and burn rate.
As a founder, the key is to balance the needs of your investors with the demands of your business. Be careful not to over-do it with the number of KPIs presented, or you may risk overwhelming your investors with too much information. Instead, aim to collate the most important data points in a way that makes them clear and easily digestible.
Be sure to highlight the most interesting and impactful elements of the business, whether it’s a significant increase in revenue or the addition of new hires with critical skills that will help the company scale. Highlighting customer wins is also an important aspect of an investor update, especially if they are large-scale customers and/or provide significant revenue streams. Also include any specific requests that you have for your investors, including introductions to potential customers and talent. Lastly, be consistent with your format, and try to use the same template from month to month. This will create a familiar and predictable framework that your investors can quickly locate and understand.