When you raise capital from investors you bring on a new group of supporters who want to see the business succeed. It’s your responsibility to keep them informed and updated on the business’s progress. This includes sharing wins and losses, financials, team updates, customer wins, and core metrics. It also includes laying out actionable questions that your investors can help with. These investor updates can be a critical component of deepening transparency and trust in your investor relationships.
Ideally, these updates should be sent out on a consistent schedule. This will give your investors a familiar and predictable framework they can track over time. The first update should be clear and concise, ensuring that your investors can quickly understand the information. It should also have a section for major asks. This is a great opportunity to send a bat signal to your investors and encourage them to help you out with a specific task or challenge your company faces.
The next sections should cover recent wins and losses. This is an important part of the update to share because it gives your investors a snapshot of what’s working and what isn’t. Be careful not to gloss over negative news – this can send the wrong message and can discourage investors from taking an active role in your business. It’s always best to be transparent and honest – this is the most trustworthy way to maintain your relationship with investors.