This post is a summary based on this great post by @hajak (do read it!). Mudcake VC also built a helpful template that you can use for the actual investor updates. Or scroll to the bottom of this post for a template I put together.

Most founders underestimate how powerful investor updates can be — and how not sending updates is a red flag to many potential investors.

So here’s a quick guide on investor updates.

Why?

• Keep investors informed. Investor updates help them feel they’re close to you, and equips them to confidently pitch you, in a natural way, to others. Investors are also much likely to keep investing in something they know well, so updates are a great way to build trust. If an investor has portfolio company that maintains radio silence for 1-2 years and suddenly pops up and asks for money, the investor is less likely to re-invest (or help find other investors).

• Activate support. You want investors help you. They can only do so if they’re informed.

• It helps you reflect. Writing investor updates on a regular cadence forces you to think about your company’s performance, and what lies ahead. And it creates accountability.

To whom?

• All your current investors. If you don’t yet have investors, then ask for permission from potential investors to send them your updates. If they have shown interest in your company, they are likely to say yes.

• Your co-founders. Ensures that you are all aligned.

• The management team, to help build transparency and trust.

When?

• Monthly for early-stage companies, quarterly for later-stage companies. If you feel you don’t have the time, at least write a few bulletpoints of highlights, challenges, and any current asks. Investors should hear something from you.

• Send it during the first few days every month, when you have fresh metrics / numbers from the previous months (e.g. on sales).

Format

• Ideally, use Google Docs, Notion or any similar shared (and easy-to-access) resource where everyone can comment as well as see each other’s comments.

• Notify investors via email that you’ve published the latest update, and include a link to it.

• Using plain text email for investor updates is common too; just avoid sending the investor update as a PDF, attachment, or Docsend, as it makes it hard to search and comment (e.g. act on).

Style and length

• Keep it brief and personal. Be yourself.

• Be honest, enthusiastic, constructive, and self-critical (as needed).

• Emoticons 📈💰💡 are fine, just don’t add them to look smart.

• Don’t take shortcuts, like having attachments or adding links to e.g. dashboards or long strategy docs — instead, summarize it yourself for the investor.

• After writing your update, ask for feedback from trusted team members and implement it before you hit send.

Content

• Only include things that equip investors to help you now or in the future.

• Exclude:

  • Information you’d be terrified to see a third-party get their hands on

  • Details around legal battles, IP etc

  • Any acquisition offers, or that other investors have approached you. Instead, discuss this 1:1 with those advisors you trust.

What to expect

• Most investors will not provide help, or even reply. Just like as with life in general, a majority are lurkers. If you need help with something specific from a particular person, email them directly.

Other update emails

• There are other stakeholder groups you want to inform as well.

  • The general public you can reach via social media posts and a public newsletter.

  • For potential employees and future investors, consider sending a shorter monthly or quarterly update email, e.g. containing a short blurb on what your company does, three positive highlights, and how they can engage/support.