Mastering Investor Updates: A Guide for Startup Founders

One of the most underrated yet powerful habits of exceptional founders is how they communicate with their investors. This is especially true in tough times, when transparency, trust, and strategic engagement can make or break a company.

I’ve seen this firsthand as both an investor and operator. Whether raising capital, navigating crises, or simply keeping investors engaged, founders who master investor updates tend to outperform those who treat them as a chore.

How Often Should You Update?

Depending on the stage of the startup, monthly updates are usually sufficient, without becoming overwhelming. When in doubt, err of the side of over-communicating. This is particularly true at times of uncertainty or difficulty with your startup. 

Common Mistakes to Avoid

Here are the biggest missteps I’ve seen founders make with investor updates:

• Disappearing Until You Need Money. Some founders only reach out when they’re fundraising. This is a mistake. Radio silence breeds mistrust. Your investors need to see the full picture, not just your best moments.
• Waiting to Share Bad News. Hiding bad news only makes it worse. Investors appreciate swift, honest updates, and they might even help you navigate challenges.
• Sending Data-Light Updates. Investor updates should be concise but rich in data. Metrics matter. Avoid vague statements and back up claims with numbers and trends.

The Ideal Investor Update 

Here is my preferred format for an investor update

1. Executive Summary: Key highlights, challenges, and KPIs
2. Wins & Losses: Major achievements and setbacks
3. Cash Position & Runway: Always be upfront about your financial health
4. A Look Ahead: What should I expect over the next 1-3 months
5. Asks: Be specific about what I can do to help the company

Using a template makes sure that you touch on all relevant points.  Also, I personally prefer a document versus a deck.  It’s easier to read and forces you to focus on substance rather than presentation.

Why It Matters

Investor updates aren’t just a formality; they’re a tool for building trust, securing support, and ensuring that your company stays top-of-mind when it matters most. The best founders treat them as a strategic asset, not an afterthought.

Whether you’re thriving or facing challenges, consistent and transparent communication sets you apart. Keep your investors informed, engaged, and aligned with your vision, because when the time comes, they’ll be far more willing to go to bat for you.