Bursts of Color - Investor Updates
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.
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)