Investor promotion is great part of your startup’s operation, but regardless of the outcome of the meeting, the opportunity doesn’t end there. You don’t have to be alone recording your hard-earned contacts in a CRMbut also keeping those relationships warm through investor briefings.
But what exactly is an investor briefing?
It is a regular email that a startup sends to its investors to update them on the company’s recent progress, key metrics, challenges and future plans.
These updates show investors your commitment to progress and learning through trial and error. Over time, this builds trust while allowing you to tap into investors’ expertise and networks. With enough trust, these investors can participate in your next round and refer you to new potential investors as well.
While it may sound like a simple email, there really is an art to writing an effective investor briefing. The following is everything you need to know about how to create and send an update that keeps investors engaged, communicates momentum, and garners support on your journey.
Your update should feel like an insider who is almost unbiased, letting the facts and figures speak for themselves.
The role of tone and transparency
Investor briefings are a critical tool for cultivating relationships, so you’ll want it to appear genuine and relevant. Try to be transparent and not salesy or unrealistically optimistic. Your update should feel like an insider who is almost unbiased, letting the facts and figures speak for themselves.
It’s also perfectly fine to recognize areas where you haven’t quite achieved your goals. I’ve seen founders turn these types of situations into pure gold just by turning them into lessons learned.
Form considerations
For seed or Series A startups, updates should be around 250 to 750 words, while quarterly and annual updates should be up to 1,500 words to take into account more areas of the business. Your investor briefing should be concise and straight to the point because investors are often bombarded with emails. Additionally, information overload can cloud your main points.
In addition to charts and graphs, your updates should be mostly text. Use bullet points and subheadings to break up the text for ease of reading.
