Investor progress update

What's an investor report, anyway?

An investor report is like a report card for your startup. It's a regular update you send to your investors, telling them how your business is doing. Think of it as a mix of good news, challenges, and requests for help, all wrapped up in one neat package.

Why should you bother with investor reports?

You might be thinking, "I'm already super busy running my startup. Do I really need to do this?" The answer is a big yes! Here's why:

1. Keep investors happy: They gave you money, so they want to know what's happening with it.
2. Get more money: Companies that send regular updates are twice as likely to raise more funds later.
3. Tap into their network: Investors often know lots of useful people who could help your business.
4. Free advice: Investors have seen it all before. They might have great ideas to solve your problems.
5. Look in the mirror: Writing these reports forces you to really think about how your business is doing.

The secret sauce: what to include in your report

Now, let's get to the good stuff. Here's what you should put in your investor report:

1. The highlight reel

Start with the good news! Did you land a big customer? Launch a cool new feature? Hire an awesome team member? Brag about it here!

2. The not-so-great stuff

Be honest about your challenges. Investors appreciate honesty, and they might be able to help.

3. Show me the numbers

Include key metrics like:

• Revenue (how much money you're making)
• Cash in the bank (how much runway you have)
• Number of customers
• User growth
• Any other numbers that show how your business is doing

4. What's next?

Share your plans for the coming month or quarter. This shows you're thinking ahead.

5.The "Help wanted" section

Need introductions to potential customers? Looking for a new team member? Ask your investors for help here.

Pro tips for awesome reports

1. Keep it regular: Send reports monthly or quarterly, but stick to your schedule.
2. Be consistent: Use the same format and metrics each time.
3. Make it skimmable: Use headers, bullet points, and short paragraphs.
4. Use visuals: Charts and graphs can make your data easier to understand.
5. Be honest: Don't sugarcoat bad news. Investors appreciate transparency.

The big takeaway

Writing investor reports might seem like a chore, but it's actually a powerful tool for your startup. It keeps your investors engaged, helps you reflect on your progress, and can even lead to more funding down the road.

Remember, the perfect investor report is clear, honest, and actionable. It shows what you've done, what you're planning to do, and how your investors can help. With practice, you'll get better at writing these reports, and you'll start to see the benefits in your relationships with investors and in your business growth.

So, don't put it off any longer. Use this guide to write your first (or next) investor report. Your future self (and your investors) will thank you!

What is an investor report?

A document regularly sent to investors to update them on the company’s progress, challenges, and future plans.

Why should you send investor reports?

• Keep investors informed and happy
• Increase chances of raising more funds
• Tap into investors' networks
• Gain valuable advice
• Reflect on your business progress

Key components:

• Highlights
• Challenges
• Key metrics
• Next month's goals
• Help wanted
• Visual data

Tips for effective reports:

• Send reports regularly (monthly or quarterly)
• Use consistent format and metrics
• Make it easy to read with headers and bullet points
• Use visuals to enhance understanding
• Be honest about challenges

Download this template and customize it to create effective investor reports that keep your investors informed and engaged.