How to write a great investor update


As your company grows, things change quickly. You need to keep your investors up to date on your financials, key hires, and customer wins. But keeping your most important stakeholders in the loop can be tedious and time-consuming. Carta makes this easier with our newest feature—investor updates.

Build trust with your investors

Sending updates to your investors at regular intervals is a key (and underrated) way to build trust and confidence with them. The better your relationship with your investor, the more likely they are to participate in your next round and refer you to new potential investors. Here are a few ways to write better updates:

Focus your update on your key metric

  • We recommend focusing on a single KPI, and showing progress against that metric in every update
  • Depending on your industry, your metric could be daily active users, monthly recurring revenue, or time spent in product
  • If your highlighted metric shifts with each update, it will look like your business lacks focus

Commit to a cadence

  • Regular updates instill confidence
  • Most small startups send monthly updates
  • Growth or late-stage companies typically send quarterly updates

Use a consistent format

  • Ensure your updates are easy to scan by including key information in headlines
  • Consistent formatting allows investors to easily compare updates
  • If you’re not sure what format to use, download Carta’s template below

Download investor updates templates

Include highlights, KPIs, customer wins, key hires, and asks

When an investor reads a company update, they’re looking for indications of your company’s trajectory. Depending on your stage, this could mean signs of product-market fit or whether your organization is scaling successfully. Most of all, investors want to understand whether you’re hitting key metrics and financial goals, including runway.

Investor updates typically include five major sections:

  1. Highlights
  2. Financials and key performance indicators (KPIs)
  3. Customer wins
  4. Key hires
  5. Asks

Highlights

Don’t bury the lede. Your investors want to scan your updates for the most important information about your company. Put your takeaways at the top.

Financials and KPIs

If you’re not sure which financials and KPIs to share with investors, download our templates. Our team asked experienced investors which metrics they care about from companies in consumer software, enterprise software, fintech, hardware, marketplace, and e-commerce. We created these financials and KPI spreadsheet templates to help ensure your updates are impactful and relevant. Even if you aren’t using Carta yet (what are you waiting for?!), you can download them above.

Customer wins

Whether you’ve landed your first customer or renewed a seven-figure contract, your investors want to hear about it. In addition to customer numbers or sales metrics, consider including new logos added, as well as positive customer quotes or net promoter score (NPS).

Key hires

As your company scales, your team will change. It can be challenging to find the right lead for engineering or marketing, but when you do, your investors will want to celebrate with you.

Asks

Whether you’re trying to make an executive hire, sell to key customers in a certain segment, or expand to a new country, your investors may be able to help.  Investors have extensive networks and connections, and they want you and your company to succeed. Let them know how they can help in this section of your investor update.

Updates can also include things like new board members, your latest product launches, or recent press coverage.

Send and track investor updates on Carta

Here’s how it works:

  • Use our templates to include the metrics your investors want to see
  • Select recipients based on their share class or relationship to your company, using data already in Carta
  • Keep track of which investors have viewed your updates

Your investors already turn to Carta for information on their portfolio companies’ cap tables and valuations. Now, you can share milestones and company performance with them on the same trusted platform.

Get investor updates as part of the Growth or Enterprise plans

To start sending and tracking your investor updates through Carta, reach out to our sales team to upgrade to the Growth or Enterprise plans. If you already have one of these plans, head to the Shareholders tab to send your first update.


DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. (“Carta”). This communication is not to be construed as legal, financial or tax advice and is for informational purposes only. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.


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