Investor update is a document shared at regular intervals (generally monthly but it can be quarterly) to share news and information about your business with investors. This communication tool helps build trust and engage your investor base. It also gives them visibility into your business performance and plans in between board meetings and strengthens your relationship with investors that can help support your company throughout its life cycle.
The most important aspect of an investor update is communicating your business’s performance. Investors want to know how your business is growing, if it’s on track to hit key milestones, and if there are any challenges. In addition, investors want to see that you’re grateful for their contributions, and that the team is working hard.
Highlights
Highlights are the good things that happened during a month or quarter, and they can be anything from record revenue growth to a new hire to a big event your company was part of. In the case of a startup, highlight accomplishments that show you’re moving in the right direction, such as a strong product roadmap or a successful fundraising round.
Lowlights
Sharing the not-so-great stuff with your investors is also essential. Investors want to be able to understand what’s happening in the company, and if you aren’t hitting your goals or facing roadblocks, they can be more helpful with their knowledge, experience, or connections to connect you to the resources you need. Investors also want to know that you’re addressing problems and are resilient, which builds trust and encourages them to keep supporting your company through its challenges.
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