How to Write an Investor Update. Our Perfect Template.

Fifth LLC.
4 min readOct 25, 2021

When someone else invests in your business, it shows that person’s trust in your ability to use the funds to build something of value. Your job now is not only to execute on the promises you made, but also to keep your investors in the loop on how their investment is doing.

What are the Benefits of Sending Investor Updates?

  • Follow on Investment. By sharing your ups and downs, the challenges you face, and how you solve them, you continue building on that initial trust. Your investor will see over time if they like how you solve problems. And if you need additional financial help, they will be more likely to provide that support.
  • Strategic Networking. Investors who like to specialize in specific industries, often have valuable networks that they can tap into to help you expand your distribution or hire key talent.
  • Priceless Advice. Experienced investors, especially those from your industry, have seen it all. Chances are that whatever problem you’re trying to figure out, you investor had seen someone else solving it well or failing spectacularly. Either way, the advice of what to do or not to do can be priceless for your early stage startup.

How to Write an Investor Update

  1. Pull up the template we provided below and jot down major points, like events or special circumstances that influenced the performance during your reporting period.
  2. Gather your data. If you don’t already, you will eventually identify key metrics that you and your investors want to monitor regularly. It can includes sales figures, # of potential leads in the sales pipeline, production costs, etc. These metrics demonstrate the performance of the most vital parts of your business.
  3. Note the changes since last time. Explain any trends and anomalies since the last time you sent the update.
  4. Write your update, connecting data with the necessary context, and send it.

Which Investor Update Template Do We Use?

We worked with many tech startups and helped write many investor updates. These updates were sent to all kinds of investors, from friends and family to angels, VC firms and funds with many partners. The template below is the one we used the most because it provides the necessary updates to different kinds of investors, and it can be used by early stage startups in most industries.

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INVESTOR UPDATE TEMPLATE

Date: March 31, 2021

1. General Update

(paragraph on general company performance/outlook/comments)

2. Key Performance Indicators

  • Cash burn for MARCH: $XXXX.XX
  • Cash Balance $XXXX.XX as of March 15, 2021

Sales

  • Product 1: $XXXXX.XX , X% growth since last month/quarter
  • Product 2: $XXXXX.XX, X% growth since last month/quarter
  • Product 3: $XXXXX.XX, X% growth since last month/quarter
  • Special Revenue: $XXXXX.XX, X% growth since last month/quarter

NET INCOME: $XXXXX.XX for quarter, X% growth from last quarter

3. Major Project Pipeline Updates

Current Projects

  • Project X is currently in process at X% completed, payment expected DD Month YYYY(or received)

Upcoming Projects

  • Project Y confirmed for January 2022, $XXXX.XX project price, Expected finish May 2022.
  • Project Z in talks for June 2022, $XXXX.XX expected project price, Expected finish October 2022.

4. Personnel Changes

Discussion of any major personnel hiring (COO, Manager, etc…) and/or turnover.

5. Objectives: April

  • Hire CXO
  • Release Key Feature ABC

6. How Can You Help?

Mention anything needed from investors that could be of help (eg. marketing efforts, hiring, connections to new clients, help reviewing latest fundraising deck, etc…)

7. Reminders

Any reminders about meetings or anything that is needed.

8. [Optional] Lessons Learned

  • What worked well and why? Are you going to continue doing it or will you continue experimenting to improve even further?
  • Where did you struggle? What are you going to do to look for possible solutions, if you haven’t solved the issue yet.

Thanks,

Your Name

Founder, CEO

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About Fifth LLC. | Software Development Agency

Fifth LLC. is a Software Development Agency, the missing piece in your entrepreneurial journey, the tech partner to bring your ideas to life.

FIFTH is an exceptional team of 35+ developers, designers and a new generation of scientists. The three co-founders with backgrounds in quantum physics, molecular physics, astrophysics, applied mathematics and artificial intelligence met at a university 9 years ago. They bonded over their shared love of technology and a keen sense of its business applications, starting a team that has built over 200 digital products to date.

We live and work in beautiful Armenia, and our clients hail from the Silicon Valley, Europe and Hong Kong. What we all have in common is the drive to elevate our clients’ business to the next level and create them loyal fans in the process. We build rich, interactive, fully integrated digital products that delight the users and are easy to update and maintain.

To find out how can make your idea a reality, contact us for a free consultation: hello@fifth-llc.com

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Fifth LLC.

We build digital products that delight the users and write about our take on technology trends.