One of my “missions” in life is to get founders to send regular investor updates. I’ve seen first-hand the HUGE impact this habit can bring — just as regualr exercise improves your sleep, focus, and overall attractiveness, sending regular updates brings multi-faceted benefits.
Think of me as your personal Richard Simmons / Crossfit Coach / Drill Sergeant whipping you into shape by enforcing good habits.
But I’m not alone in my missionary zeal — many smart folks are standing next to me on this soapbox:
Invest In Lines, Not Dots by Mark Suster of Upfront VC. Mark gives a good summary of why building relationships with investors starts well before you ask for money — many months in advance.
13 Investor Emails That Turned Our Dots Into A Line: by Reza Khadjavi of Shoelace. Riza gives a good summary of why updates are so valuable, plus excerpts from their previous 13 updates to inspire you.
In short, investor updates are a great way to warm up investors for your next funding round. And of course, if you already have investors, sending regular progress reports is de rigueur to keep the people who believed in you happy:
Every Seed Stage Founder Should Send Monthly Investor Updates by Brendan Mulligan of LaunchKit. He describes how the act of writing an update is a good time to reflect on your business and keep your extended team on the same page.
Why Investor Updates Are Really, Really Important by Jason Calacanis (investor in Uber and 100+ other startups). Jason describes the view from the investor’s side with his typical candid style: “If your startup isn’t sending you monthly updates it’s going out of business.”
Investor Relations For Startups — The Data by Jay Levy of Zelkova Ventures. Jay surveyed angels and VCs about the frequency, format, and importance of updates. The most telling statistic: “Up-to-date investors are 200% more likely to re-invest.” How’s that for ROI?
Here are a few additional tips for getting your Investor Updates done, fast and easy, with Foundersuite: