Bursts of Color

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Bursts of Color - Investor Updates

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Bursts of Color - Investor Updates

Geoff Donaker
Jan 6, 2022
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Thanks to all of you who write and send regular business updates to your investors! It's wonderful to hear from you and learn what's new. There is no one right way to write an investor update; part of the fun is sharing your own voice. Given that I get to read scores of these, following are a few thoughts on best practices.


From someone who reads even more of these...

Default ingredients for an investor update:

Who

  • All investors on the cap table receive this

  • Please use BCC or equivalent

  • Be aware that your readers receive dozens of these

Why

  • Keeps your supporters informed and, well, supportive

  • Forces you to "copter up" on the business

  • Provides you an opportunity to ask for help

When

  • Quarterly is most common; monthly is second

  • Key is to pick a cadence and stick to it

  • Avoid going dark for long stretches; no news is not good news

  • If the time comes to discontinue the updates (e.g., you're getting too big or close to IPO), just communicate that

What

  • 2-3 key metrics with comparison to last update

  • Cash in bank + burn rate

  • Headcount update + any key leadership changes

  • Mention of any big new launch, press or expansion

  • 1-3 charts or images: a picture's worth 1000 words

  • Personal update when relevant

  • Selective asks: the things you actually want help with

How

  • Typically 150-500 words

  • If you like to do the long-form version with department updates; start with a "highlights" section

  • For asks: be specific and make it easy for people to help you (e.g., If you want to solicit exec candidates, include a short job description that folks can copy/paste)

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