When you raise capital, you bring on a new set of supporters who want to see your company succeed. Keeping them in the loop about the big wins, challenges and plans that shape your business’s trajectory is one of the most important things you can do to build trust and engagement. That’s why the investor update—an underrated but critical tool for maintaining communication and fostering trust, securing future funding, cultivating strategic guidance, and more—is so important.
Providing an investor update is a great way to share key information on how your startup is progressing on its goals. Depending on your stage, this could include anything from indications of product-market fit to the status of key metrics and milestones like revenue and burn rate. The investor update is a high-level summary of key highlights and data to provide investors with a snapshot of your company’s progress.
The format for an investor update is typically a monthly or quarterly report that includes four sections: Overview (Highlights, Performance, Economical Metrics, and Needs) – Keep this section short and succinct to highlight the most important data. Also, be sure to use bullet points and clearly labeled headers to make it easier for investors to skim.