Investor update
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A regular email from a founder to investors sharing company progress, key metrics, challenges, and specific asks for help.
An investor update is a regular email (usually monthly) that founders send to their investors and advisors. It shares key metrics, highlights, lowlights, and specific asks for help. It keeps investors informed and engaged without requiring a meeting.
The best investor updates are honest and structured. They lead with key metrics (ARR, growth, burn), highlight wins and losses, name specific challenges, and end with asks: 'We are hiring a VP of Sales, do you know anyone?' or 'We need an introduction to [company].' Investors want to help but cannot if they do not know what you need.
Consistent updates build trust. Founders who go silent when things are tough lose investor confidence. Founders who share bad news openly and show they are addressing it build trust and get more help. Angel investors and VCs alike appreciate regular communication.
Examples
A founder sends a monthly investor update.
The email has five sections: Key Metrics (ARR, MRR growth, cash position), Wins (closed two enterprise deals, hired a CTO), Challenges (sales cycle lengthening, one key engineer departed), Priorities for Next Month, and Asks (need intros to 3 target companies, looking for a VP of Marketing).
An investor responds to a help request in the update.
The founder asked for an intro to the CTO of a target customer. The investor has a direct relationship and makes the introduction. The intro leads to a meeting and eventually a $100K deal. The investor update made it happen.
A founder shares bad news in the update.
Churn spiked to 8% this month. Instead of hiding it, the founder explains the cause (a pricing change that backfired), the response (rollback and customer outreach), and the expected timeline for recovery. Two investors offer specific advice based on similar experiences.
In practice
Monthly investor update email
Subject: [Company] - [Month Year] Update Hi [Investors], TL;DR: [One sentence summary. Lead with the most important thing.] KEY METRICS - ARR: $__M (up/down __% MoM) - MRR: $__k - Burn: $__k/month - Runway: __ months - Customers: __ (net new: __) WINS - [Biggest win this month] - [Second win] CHALLENGES - [Biggest challenge - be honest] - [What you are doing about it] ASKS - [Specific, actionable request: intro to a person, advice on a topic, help hiring a role] Thanks, [Your name]
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Frequently asked questions
How often should you send investor updates?
Monthly is the standard cadence. Some founders send bi-weekly updates during fundraising or critical periods. Less than monthly and investors lose touch. More than monthly and it becomes a burden to write and read.
Who should receive investor updates?
All investors (regardless of check size), board members, key advisors, and anyone you want to keep informed and engaged. Some founders include potential investors to build relationships before the next fundraise.
Related terms
A presentation prepared for board meetings that covers company performance, key metrics, strategic decisions, and upcoming plans.
A form of private equity financing where firms invest fund money in high-growth startups in exchange for equity.
A high-net-worth individual who invests their personal money in early-stage startups in exchange for equity.
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