After investing in a number of startups over the years, it’s clear that entrepreneurs need some guidance around regular investor updates. At the most basic level, investors should be updated on a regular basis either monthly or quarterly, both to help the investor understand how things are going as well as to let the investor know areas where they can help. Almost all investors want to add value, and regular communication is key.
Here are a few items to include in regular investor updates:
- Key financial metrics including monthly recurring revenue, cash on hand, monthly burn rate, etc.
- Quick department updates (e.g. 3-4 bullet points for sales, marketing, services, support, engineering, etc.)
- Culture update (it’s important to highlight the culture, even with investors)
- Company needs and areas to help
Entrepreneurs that have raised money should put a recurring event on their calendar to provide regular investor updates. Ongoing communication is critical to a healthy relationship.
What else? What are some more thoughts on regular investor updates?