An investor update is the key to staying in touch with and securing future funding. While investor updates vary based on your business’s line of business, they tend to abide by a similar structure and include the following sections:
Overview
In this first section, share an overview of the company’s health, including any changes to the team, recent financials, or any significant milestones that have occurred. Be very transparent about any challenges; this can help build trust and reassure investors that you are working to address any issues as they arise.
Performance
Highlight key metrics that are important to your business, such as daily active users, net new recurring revenue, and time spent in product. Investors love to see progress against these metrics, and keeping them updated helps them stay informed and ready to help when you need it most.
Economical Issues
While it may be tempting to gloss over the numbers, this is not in your best interest. If you’re struggling to keep up with a burn rate that is high, your investors will want to know as soon as possible.
It’s also important to share a lowlight in your investor update. This doesn’t have to be the death of a startup—it could simply be a loss of a customer, a missed opportunity, or an unavoidable problem like a product bug or a lagging market. Whatever the lowlight is, it’s crucial to share it and give an explanation as to what you plan to do to fix it.