How I Write Investor Updates

Running a start-up or spearheading founder-led sales isn’t easy, especially if it’s your first time.

One resource I’ve frequently turned to when faced with a challenge I don’t know how to overcome is my investors.

But I’m only able to because I’ve been able to build and foster good relationships with them with the help of monthly investor updates.

During my spells as CEO of AXDRAFT and AiSDR, I’ve written 58 updates (and still counting!).

This is something I’ve done almost religiously ever since my first month running my first company. 

I believe it’s the least you can do for people who entrusted you with millions of dollars with almost no strings attached.

Here’s how I do it.

TLDR:

• The goal: Write investor updates that describe the company’s current situation
• The tactic: Apply 3 key principles to each investor update
• The result: Build trust with investors while laying the foundation for future intros and referrals

Step 1: Put yourself in the investor’s shoes

Whenever I’m writing an investor update, I try to imagine that I’m someone who invested in AiSDR.

With this in mind, I ask myself, “What do I want to know?”

My answer? I’d like to know what happened and what the company managed to accomplish during the month.

Typically, this boils down to 4 things:

• Key revenue metrics
• Highlights
• Lowlights
• Progress toward goals

From time to time, I add sections that cover my perspective about a specific big news event or a recurring issue, as well as any recognition and awards AiSDR received. 

For example, if the United States were to pass a massive AI law, I might share my thoughts about how it could impact AiSDR and our plans. Or if email service providers changed how they track and flag spam, I might ask for peoples’ experiences.

Step 2: Start with the executive summary and numbers

Investors are busy people who value their time, and if I were them, I’d want to know how the company is faring at a glance.

That’s why I try to start every update with a one-paragraph summary and key metrics.

The metrics I usually cover are:

• Annual recurring revenue – all ongoing revenue (projected over one year)
• Churn – the number of customers who unsubscribed (measured in ARR)
• Cash in the bank – the current amount of money in the company’s bank account
• Burn – the amount of money spent each month
• Runway – the amount of time the company has before it runs out of cash (measured in months)

In my eyes, these are the essentials that an investor might want to know, but if the situation calls for it, I add additional metrics like growth month-over-month. I also include any metrics that investors might specifically ask for.

Step 3: Be radically transparent

As a rule, I try to be honest in everything I do, whether it’s being upfront with potential customers about AiSDR’s performance, telling investors about our situation, and letting them know what is and isn’t a priority in our product roadmap.

After all, I think that if you’re not being honest and you’re hiding data, you’re only helping your ego.

There was some sort of failure, and you wanted to keep it secret.

What makes this worse is that there’s no need to.

Investors in early-stage companies understand the risks and they’ve accepted that the business could fail. They also know you’ll face several problems and challenges before you find your product-market fit.

They just want to know your current progress toward goals.

The Result

By being clear, to the point, and transparent about what’s working and what’s not, you give your investors reason to trust you.

That’s not all.

You can build on that trust by sharing your wins and your losses, as well as any lessons you learned along the way and how you’ll adjust your strategy going forward to make sure you stay “default alive“.

Do this and you’re sure to forge positive, meaningful relationships with investors who will give you a hand when you need it, provide advice, and set up intros once you decide it’s time to raise Series A or Series B.