Investor updates are an essential way to keep your investors informed about your company’s progress and give them opportunities to step in and help you when necessary. However, they’re often a time-consuming and daunting task to put together. That’s why, in this article, we’ll share a few templates and best practices we’ve learned from working with GrowthX portfolio companies and other founders around the world to send effective investor updates.
When it comes to investor updates, a few key things are universally important: -Financial metrics: this includes monthly revenue (MRR)/annual recurring revenue (ARR), growth rate, churn rate, and other core data points that demonstrate how your company is performing. It’s also good to note if these metrics are trending up or down, as well as your current cash runway.
-Team and business highlights: this is an opportunity for you to highlight individual kudos within your team as well as highlight significant accomplishments. It’s also a great opportunity to show your investors that you are keeping on top of key initiatives like hiring and product development. It’s also worth noting any major milestones you have reached or challenges you are facing.
Finally, don’t forget to include a list of any questions or requests your investors might have. This will help to give the update a more personal touch and will set the tone for your relationship moving forward. Finally, pick a schedule for sending investor updates and stick to it. This could be the last Friday of each month or the first day of the next month, but it’s important to stay consistent and show that you take these updates seriously.