How to craft effective investor updates

Investor updates can often feel like a chore for founders, but they are an essential tool for maintaining transparency, building trust, and securing future funding.

In a recent episode of the Sidekick, David shares his view on how to structure investor updates and make them effective yet simple. He also shares two investor update templates.

Listen on

TIMESTAMPS:

(0:00) Intro: Why investor updates matter for founders

(0:49) Monthly update template for existing investors

(2:22) Quarterly update template for potential investors

(3:42) Recap & Final takeaways

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Key takeaways:

1. The Monthly Update template for your existing investors

For your existing investors, we suggest a straightforward format for monthly updates, which can be shared via Notion, email, Google Docs, or PowerPoint.

>>> Access Monthly Update Template <<<

A recommended structure includes:

• Mission reminder: A quick refresher on company goals and milestones necessary for securing the next round of funding.

• Business update: Key highlights and lowlights of the past month.

• Key metrics: Financial and product performance indicators.

• Ask for help: Areas where investors can provide support.

• Acknowledgment: A thank-you section to recognize those who have contributed to recent successes.

  
  

Some founders also include a Loom recording to provide additional context and engagement, which is a great best practice.

2. The Quarterly Update template for potential future investors

These quarterly updates serve a different purpose: nurturing relationships with potential future investors. These updates should strike a balance between transparency and intrigue.

>>> Access Quarterly Update Template <<<

A simple structure for quarterly updates includes:

• Company refresher: A brief introduction to remind VCs who you are and what you do.

• Business progress: Highlights from recent milestones, similar to the monthly update but refined for an external audience.

• CTA: A closing section that hints at upcoming funding rounds or requests for follow-up meetings.

3. Keeping It Simple and Consistent

Investor updates should not be overly complex. They are an opportunity for founders to step back, reflect on progress, and maintain momentum with both existing and potential investors. Using a simple, repeatable structure makes it easier to stay consistent and ensures that investors can quickly grasp key updates without unnecessary detail.

Conclusion

Investor updates don’t have to be a painful task. By adopting a structured yet flexible approach, founders can make the process efficient and valuable. Whether it’s a monthly check-in with existing investors or a quarterly outreach to potential future investors, these updates serve as a great tool for fostering trust and securing future funding.

If you’re looking for templates to streamline your investor updates, you can access our suggested formats in Notion via this link:

Listen to the full Sidekick podcast episode here!