When investors put their money into your startup, they’re making a long-term investment in your business. To nurture that relationship, you need to keep them informed about the progress you’re making and any challenges your company is facing. The best way to share this information is through an investor update, which is a summary of your company’s recent wins and losses.
Investor updates can be sent via email or presented in a slide deck. Regardless of the format, they should provide an overview of your company’s performance and key metrics that will help maintain transparency and trust. In addition, your investors want to know what you plan to do to overcome any challenges you’re facing.
Often, investor updates focus on the highlights of your company, but it’s also important to include the lowlights. After all, no startup is without its challenges, and avoiding addressing these could lead your investors to think you’re hiding something. Furthermore, addressing the lowlights shows that you’re a thoughtful entrepreneur and care about your investors. This can be a big reason why they’re more likely to participate in your next funding round or refer you to new potential investors.
Investor updates can feel like a chore to write, but they’re essential for building trust and maintaining transparency with your investors. Instead of relying on static templates, try upgrading to a purpose-built software solution that streamlines the process with real-time collaboration and engagement tracking. With Visible, you can create a customized investor update template and automate your process to make it easier to send.