How I write investor updates
Context
This is the investor update format & process I’ve developed over the last decade. I’m aware of at least 7 other startups that have copied it, and I hope to see many more!
Keeping up a regular — I prefer monthly — cadence of updates is great for several reasons:
- it keeps you disciplined and accountable (and demonstrates that discipline)
- it puts you top-of-mind for your investors, generating unexpected opportunities
- it gives you a chance to ask investors for help, but in the context of providing valuable information to them
- it’s a chance to regularly reflect on your progress
Let’s get into the format, and then some specifics on how to execute it.
Format
This information is exclusively for Acme stakeholders. Please keep it confidential.
Hi everyone — here’s your latest monthly update from Acme Corp. headquarters.
tl;dr: September set a new record for contracted revenue - $[x]!; but we churned our third-biggest customer after an issue with downtime; we have made reliability our top Q4 product priority
In the tl;dr: ideally at least one win and one challenge; no more than 4 items. Make sure to explain these further in the appropriate sections.
Acme is: [blurb about Acme]
This blurb is useful both for existing investors to stay current on how you describe the business, and for anyone the email is forwarded to (more on that below).
Asks
1. [Request #1]
2. [Request #2]
Make asks extremely specific and easy to take action on — e.g. instead of ‘we want to talk to any consumer brands over $5MM in revenue,’ say ‘we’re looking for intros to [list of 5 brands], or any others like them over $5MM in revenue. Reply to this email if you know someone and I will send you a blurb to forward.’
Acme Love
[A couple highlights from customers or team, or other cool things that have happened. Images are great here.]
Metrics
[Charts of your key metrics, plus any brief commentary that would help explain them.]
Product update
What we worked on since last update:
- [bullets of what’s been shipped]
What’s up next:
- [bullets of what’s getting built]
[Other]
For some companies, this should be a section similar to ‘Product update’ but for sales, or marketing, or community — or anything else you think deserves a section. Every business is different.
Team
Jane Smith joined as a Staff Software Engineer, Backend. She joins us from High Voltage Engineering Corporation where she led the team responsible for their particle accelerator monitoring systems.
Thank yous
Georges Doriot at ARDC for a great introduction to leadership at Digital Equipment Corporation, a potential customer.
Keep a running list during the month of any investors that helped out. This list pays massive dividends — people really appreciate being recognized in front of their peers.
Often, when investors help out — especially on an item from the ‘Asks’ section — they say ‘hope this lands me on the list next month!’ If that’s not evidence that this works, I don’t know what is…
In closing
As ever, thank you for supporting Acme. I’m always available if you want to catch up. You can email me or reach me on iMessage/Signal/WhatsApp at [my number].
Andy
Process
Timing
I recommend sending these on the same day every month — I send them on the 5th of the month (so the “September 2024” update comes on October 5th, 2024).
It’s useful to give yourself those couple days after the close of the month to write this up, but I am strict about including only things that happened in the month of September. Why?
Because if you include anything from the first 5 days of October, you’re mortgaging against your October update! And if you start including the first 5 days of the following month every time, then you’re losing the benefit of having a couple days “after close” to put the update together.
Being incredibly consistent — sending on the same day, every month, no matter what (weekends & holidays included!) — costs you very little, but enforces real discipline on you and shows that discipline to investors (and they love it). It sets a drumbeat and keeps you accountable to making forward progress every month.
Sending
I use Mailsuite (formerly Mailtrack). All the investors are in a Mailsuite “list,” and I create a “campaign” to that set of investors and hit send. This gives me open tracking (if someone “opens” it 100 times… it probably means they forwarded it around) and click tracking.
After I send to investors, I also forward it to the team. The content in the update shouldn’t be news to them, but it’s still nice for everyone to be able to see what we’re saying to investors each month.
Writing process
The update looks long (and impressive) — but it really should only take a couple hours, at least in a normal month. Taking a few hours a month for the chance to communicate with my most invested supporters is a trade I’ll take all day. It keeps me accountable, keeps them informed, and keeps the company top-of-mind for them.
Depending on your team composition, other people can generally do the first drafts of at least:
- metrics
- product update
- team
That leaves you with:
- tl;dr / summary — a useful exercise for the CEO to do every month!
- asks — you can crowdsource these as well, but you’re likely to have the best view
- Acme Love — other people can do this, but I find it fun (and it keeps you close to the customer and the team)
- thank yous — you were likely the recipient of the help, so you’re the one who would know
- and editing/polishing the whole thing
Again: I’ve found this takes me (and friends who have copied this format) a couple hours. Well worth it!
Special editions
Sometimes, a “special edition” is warranted — maybe you had a big launch or other news, or are changing strategy, or something else.
In these cases, I tend to remove a few sections from the typical update, and instead put a big “Update” section below the tl;dr and asks. There’s no need to be too rigid about the format — feel free to mix it up when called for.
Prose & reflections
Most of this update format is objective and bulleted. But if you have broad thoughts on your strategy, the market, or anything else that might be relevant, you should absolutely include them (perhaps in their own section).
I’ve gotten the best feedback on updates where I included some meaningful thoughts. Some investors don’t love it (“just give me the numbers!”), but most find it helpful and interesting. You’ll never please everyone.
Intentional forwarding
Aside from the accountability, getting help, and staying top-of-mind, one of the best uses of a well-written investor update is having it be intentionally forwarded.
Say you’re looking for an introduction to a potential new investor (or candidate, or partner…). When someone volunteers to set up the intro, just have them forward your most recent update with some commentary.
JH — I’m an investor in Acme, and they’re gearing up for their next round. The CEO, Andy, was interested in meeting you. Below is their most recent investor update, for context. Let me know if you’d like to connect.
- Georges
Begin forwarded message:
From: ‘Andy Bromberg’ <andy@andybromberg.com>
Subject: Acme Corp. Investor Update [September 2024]
…
This brings the recipient into the fold, gives them context, shows them your willingness to honestly share both wins and challenges with stakeholders, and — if you’ve written it well and the company is doing well! — demonstrates competency and progress.
I’ve found it far more effective than a vanilla email with a brief blurb.
Confidentiality
In line with the above… you also need to assume that everything in your updates will get forwarded to competition, other investors, and more (or could end up in the news!).
So write it with that in mind. Sometimes investors will say you should include even more in your updates, and/or more sensitive information. It’s fine to say “happy to chat about that live or answer any questions directly — I’m just sensitive to blasting that out with the potential of it being forwarded.”
(Or you can include more — everyone has different preferences.)
Looking for more to read?
Subscribe to my roughly-monthly newsletter of recommendations, experiments, and ideas:
And I'd love to hear from you: andy@andybromberg.com