An investor update is the regular monthly or quarterly written communication founders send existing investors summarizing key metrics, wins, lows, and asks. Sometimes also sent to other supporters of the company, the update covers the period's wins, lows, the asks where the founders need help, and the current state of the business, used to maintain investor confidence between formal board meetings, surface help requests proactively, and build the trust that makes future financing easier. It is one of the most under-invested founder communication practices and one of the most leveraged: a consistent investor-update cadence dramatically lowers the friction of every subsequent fundraise.
The structure of an effective monthly in...