Investors want to see the businesses they’ve put their money into succeed. Providing regular investor updates helps deepen transparency and build trust, and is a vital part of building an ongoing relationship with investors.
An investor update is a monthly email that shares the key metrics and milestones your investors need to know. They can be as brief or as detailed as you need them to be, but it is important that they are consistent and a part of your regular communications with investors. Keeping the update short and easy to digest will ensure your investors are not overwhelmed by it.
It’s also a good idea to add some context around any significant changes in the data you are sharing. For example, if your net new MRR is growing faster than expected, be sure to share that with your investors. Similarly, if you miss your revenue milestone or need help hiring for a new role, it’s important to include that as well.
Having a template will make it much easier to keep your investor updates on track each month. This is especially true if you have a standard formula for how you calculate your data (i.e., your “standard gross margin”). Using a template will also keep the format consistent from month to month.
Remember, your investor updates are not just for investors, but anyone who has made a financial contribution to your business. Including non-investors in these updates can help you expand your audience and demonstrate that your company is a great place to invest.
