How To Make Investor Updates
A Simple Guide For Getting Started
Jun 8, 2023
Are you looking for ways to improve investor communication? Whether you're just starting out or have been at it for a while, there's always room for growth.
In this blog post, we'll go over why investor updates are important - what to include, when to send them, and how to format them.
We'll also discuss sending investor updates electronically, which is becoming increasingly popular among startups. So whether you're just getting started or are looking for ways to improve your investor communication strategy, read on!
Why investor updates are important
Investor updates serve as a way to communicate progress, inform about changes or challenges in the company, and build investor confidence. Regular investor updates can help maintain good investor relationships and ultimately lead to continued support for your company.
For example you may find that investor updates are necessary to:
Report quarterly results
Announce company milestones or partnerships
Discuss changes in leadership or business strategy
Provide information on financial health and projections
Address investor concerns or questions
They can even help you to attract new investors by showing progress and potential for growth.
What to include in investor updates
When crafting investor updates, it's important to provide relevant and meaningful information. This can vary depending on the specific industry or company situation, but some common items to consider including are:
Company performance metrics
Updates on products or services
Highlights of recent partnerships or acquisitions
Future plans and projections
Any financial data such as revenue, expenses, cash flow, funding raised
It's also important to note any changes or challenges that may have occurred since the last investor update. It's better to address these issues proactively rather than having them come as a surprise to investors because it shows transparency and trust.
When to send investor updates
It's generally good practice to send investor updates at least quarterly, if not monthly. This allows for regular communication and gives investors a clear understanding of the company's progress.
Additionally, investor updates should be sent out in conjunction with any major events or changes, such as when releasing quarterly results, announcing a new partnership or acquisition, or addressing investor concerns.
A good rule of thumb is to send investor updates as often as necessary to keep investors informed, but not so frequently that they become overwhelming or repetitive.
How to format investor updates
There is no one-size-fits-all approach to formatting investor updates, but some general guidelines include:
Include a clear subject line
Provide a brief introduction or overview
Use bullet points or a numbered list for easy reading
Include links for further information or resources
End with any necessary contact information
Sending investor updates electronically
Sending investor updates electronically, such as via email or an investor relations platform such as VenturePort, has several advantages. It allows for quicker and easier distribution, as well as the ability to track who has opened the update and when.
Additionally, sending investor updates electronically can save time and resources compared to printing and mailing physical copies. It also allows for easy access to past investor updates, making it easier for both you and investors to reference them in the future.
No matter what format you choose, the important thing is to have a clear and consistent method of communication with investors. Regular investor updates serve as a way to maintain investor relationships and build confidence in your company's progress.
Investor updates are important because they help to build investor confidence by providing relevant and meaningful information about the company's progress.
They should be sent out regularly, at least quarterly, and in conjunction with any major events or changes. investor updates can be sent electronically, which has several advantages, such as quick and easy distribution, the ability to track who has opened the update and when, and saving time and resources.
Overall, regular investor updates serve as a way to maintain investor relationships and showcase the company's progress.