Investor update is a key component of building a strong relationship with your investors and ensuring they stay up to date on company progress. Investors that are fully informed will be more likely to make follow-on investments, participate in your next funding round, and refer you to other potential investors. Investors will also be able to support your company through its rough patches by providing advice, making introductions, and lending their network of resources.
Investors will want to see how your business is performing, including your financial performance, a burn rate overview, and key growth metrics such as daily active users, monthly recurring revenue, and churn rate. They will also want to see how these metrics are trending over time.
It’s important to highlight your triumphs in an investor update, but don’t be afraid to show the warts as well. Being honest and sharing both the highs and lows fosters trust, and helps your investors feel like a part of the company’s team.
Investors will also be looking to hear how you plan on moving forward in the coming months, and may wish to ask questions. For this reason, it’s a good idea to schedule your investor updates for Wednesday or Thursday of each week. This will ensure that your investors can quickly review and respond to the updates before the weekend or their partner meetings on Friday.