Investor updates are a key part of the communication process between startup founders and their investors. They can help to establish trust and transparency, which are important for building a healthy long-term relationship with your investors. They also offer an opportunity for founders to step back from the day-to-day grind of running a business and reflect on the company on a regular cadence.

The format of an investor update will vary depending on the size and stage of your business, and your relationship with investors. However, most investor updates include the following sections:

Metrics and Key Performance Indicators

The first section of an investor update typically includes a list of key metrics that are most important to your investors. These could include your monthly recurring revenue (MRR), annual recurring revenue (ARR), number of customers, growth rate, customer acquisition costs, and churn rates. It’s best to be consistent with the metrics you include from month to month, as this will create a sense of trust with your investors.

Highlights and Lowlights

The next section of an investor update is often where founders showcase the highlights of the month or quarter. This can be anything from new client wins, to record MRR growth, or a shout-out to new team members. It’s important to also share any lowlights, as this shows that you are open and honest with your investors.

Finally, the last section of an investor update is usually where founders ask for help. While it can be scary to share a list of your company’s needs, it is ultimately in your investor’s best interest to support you in any way that they can, particularly as the startup landscape becomes increasingly competitive and the odds of your business being successful are statistically low.