Basics of investor update and reporting

As a startup founder, keeping your investors informed and updated about your company’s progress is essential. Not only does it build trust and confidence in your investors, but it also helps you establish a good relationship with them. In this article, we will explore the basics of investor updates and reporting. Why it is important to update your investors, how to report to them, who should receive your investor updates, how often you should update them, and the importance of check-in meetings with investors.

Why do I need to update my investors?

For startup founders, it is important to keep your investors informed about your company’s progress. Regular updates will help your investors understand how their investment is performing and what the company is doing to achieve its goals. When you update your investors, you are also showing them that you are responsible and accountable for the money they have invested in your company.

It also shows potential investors your progress and current track record. As they haven’t invested in you yet they need to be convinced first and building that trust requires data-driven investor relations.

Investors also play a crucial role in helping your startup grow. They can provide valuable insights, connections, and resources that can help your business succeed. Keeping them informed about your progress and challenges can help you leverage their expertise to overcome obstacles and take advantage of opportunities.

Finally, regular updates can help you build a strong relationship with your investors. By keeping them in the loop, you are showing them that you value their support and trust. This can lead to a long-term relationship that can benefit your company in the future.

How do I report to investors?

There are several ways to report to your investors, and the best approach depends on the type of information you want to share and your investors’ preferences. Some common methods include:

Email updates: Email updates are a simple and effective way to keep your investors informed. They allow you to share key metrics, milestones, and updates on a regular basis. You can also include links to relevant articles or reports that provide more in-depth information.

Quarterly reports: Many startups provide quarterly reports that provide a more comprehensive overview of the company’s performance. These reports can include financial statements, key metrics, and updates on major initiatives.

Investor portals: Some startups use investor portals such as DueDash enable you to share information with your investors. These portals provide a secure platform where investors can access updates, documents, and other relevant information.

Investor meetings: Face-to-face meetings with your investors can be a great way to build relationships and provide updates. These meetings can be held in person or online, depending on your investors’ preferences.

Who should receive my investor updates?

Your investor updates should be sent to all of your investors, including existing investors, potential investors, and multiplicators. Existing investors are obviously the most important group to update, as they have already invested in your company and are likely to continue to do so if they see progress. Potential investors are also important because they may be considering investing in your company in the future. Finally, multiplicators are individuals or organizations that have a strong influence in your industry or network. These people can help spread the word about your company and potentially attract new investors.

How often should I update investors?

The frequency of your updates will depend on your investors’ preferences and the stage of your company. In general, most startups should provide monthly or quarterly updates. Monthly updates can be useful for startups that are in the early stages of development and need to show consistent progress. Quarterly updates are more common for startups that are more established and have a more predictable revenue stream.

If you don’t have yet a certain rigour in your updates yet or have less interaction with investors you should definietly start with monthly investor updates and reporting.

Check-in meetings with investors

Finally, it’s important to schedule regular check-in meetings with your investors. These meetings can provide an opportunity to discuss your company’s progress, challenges, and future plans. They can also help you build a stronger relationship with your investors and gain valuable feedback and insights. Ideally, you should schedule these meetings every quarter or every six months, depending on your investors’ preferences.

Consider also having follow-on meetings with your potentital investors. If you goal is to convince them or let them open doors for you to other investors they need to see your progress. Decide who are relevant investors and how often do you want to meet investors. If you are not in an active fundraising phase but already know you are planning to raise in the future you could consider having 1 – 3 investor meetings per week to keep up your exchange with them and be ready when you are planning to go on a road show for your upcoming investment round.

In conclusion, updating your investors is a critical part of being seen as a trustworthy founder and enabling you to raise further capital as well as open doors to relevant connections through your investor network.

DueDash offers you the ability to update investors and send out regular reporting. You want to start building better investor relations? Let’s have a chat and we will discuss the next steps for you.