An investor update is a critical piece of your communication strategy. Investors expect regular insights into the health of your company and the progress you are making toward product-market fit. This includes data on key metrics, such as recurring revenue, customer acquisition rates and average time spent in product.
Whether you’re at a pre-seed or seed stage, delivering these updates helps you build trust and ensure your investors are confident that their capital is being stewarded wisely. It’s also an opportunity to gather resources and advice to help you accelerate your business.
A structured approach to crafting your investor update provides structure, which will make it easier for you to share the right information at the right time. To do this, start by establishing the purpose of the email and outlining what type of data you’ll be sharing. Focus on sharing growth metrics and milestones to reinforce your momentum, while addressing any challenges proactively by sharing solutions or plans.
The most important part of an investor update is your financial performance, which includes current revenue and projections. This section helps your investors understand your cash runway and burn rate, so that they can monitor and point out any concerns. It’s also a good opportunity to highlight key client wins or success stories that validate your market position. New hires or other team growth should also be highlighted in your investor update, as well as any specific requests that you need help with, such as introductions to potential customers or additional mentorship.
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