Blog: VLP Speaks

Investor Updates – a blog post by VLP Partner David Goldenberg

Posted on Jan 18, 2023 in Blog by David Goldenberg

Keeping in communication with your investors is a key element of startup success.  A few thoughts and tips below.

Startups often rely on investors to provide the necessary capital to get off the ground and grow. As such, it’s important for startups to keep their investors informed about the progress of the company and any major developments. One way to do this is by providing regular updates, either through in-person meetings, conference calls, or written reports.  One survey showed that startups that provide regular investor updates are three times more likely to receive follow-on funding.

There are several key things that startups should consider when giving regular investor updates.

• First and foremost, it’s important to be transparent and honest about the company’s progress. Investors want to know what’s going well and what challenges the company is facing. It’s okay to admit mistakes or setbacks, as long as the startup is also able to provide a plan for addressing them.
• Second, startups should focus on the key metrics that are relevant to their business. This might include things like revenue, customer acquisition, and user engagement. Providing data and analysis on these metrics can help investors understand the health of the company and how it is performing against its goals.
• Third, it’s a good idea to provide updates on any major milestones that the company has achieved. This could include the launch of a new product or service, a significant partnership, or the completion of a funding round. These milestones demonstrate progress and can help to build investor confidence.
• Fourth, startups should be prepared to answer questions and address any concerns that investors may have. This might involve providing more detailed information about a particular aspect of the business or explaining how the company plans to address a specific challenge.
• Also consider giving thanks to any investors who have helped with something (introduction, advice), and make direct asks for resources you are looking for (specificity helps here).

There are a few different ways that startups can give regular investor updates. One option is to hold in-person meetings, either individually or as part of a larger group. These meetings can provide an opportunity for more in-depth discussion and can be a good way to build relationships with investors.

Another option is to hold conference calls, either by phone or via video conferencing. This can be a more efficient way to reach a larger group of investors, especially if they are located in different parts of the country or world.

Finally, startups can also provide written updates, either through a newsletter or a dedicated investor portal. This can be a good way to provide regular, ongoing updates to investors and can be especially useful for startups that have a large number of investors.

Overall, giving regular investor updates is an important way for startups to stay connected with their investors and keep them informed about the progress of the company. By being transparent, focusing on key metrics, highlighting major milestones, and being prepared to answer questions, startups can build trust and confidence with their investors and set the stage for continued success.​