Investors have put their money into your company, so they’re invested in your success. That’s why it’s important to communicate regularly with investors through the investor update, a document that showcases your progress and provides context for the challenges you are facing.
An investor update can cover a lot of ground, including financial metrics, challenges you’re facing, and plans for the next month (or quarter). It should also include details like key milestones or achievements that show your company is making significant progress.
As your relationship with investors deepens, it becomes increasingly important to share the good and bad news of your company’s performance. If you only talk about the good, your investors will start to lose trust in you as a founder and may be less likely to support you when you need them most.
For example, if you are phasing out a product because it isn’t performing well, investors will want to be aware of this so they can make appropriate introductions and keep an eye out for potential opportunities to revive it. Similarly, if you are considering hiring for an open role, investors will be able to provide insights and connect you with candidates from their network.
To streamline the process of creating an investor update, set a consistent schedule and stick to it. Once you know what to expect, it’s easier to collect the right data. Keep your updates concise and easily navigable by relying on bullet points, short sentences, and clear section headers.