Comments on: How and why to send investor updates

By: Alex Iskold

Alex Iskold — Mon, 18 Apr 2016 20:06:31 +0000

Great point Ethan, yes, analysis if done well and coherently can be super helpful. It really depends on the group too. Want to take a pulse and really see how people engage. KPIs + text => Okay. Just Text with no KPIs ==> No okay 😉

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By: ethanaustin1

ethanaustin1 — Mon, 18 Apr 2016 04:43:10 +0000

Agree with all this. My first ever blog post was on this topic.

https://ethansaustin.com/2011/09/05/the-key-to-investor-relations-purposeful-engagement/

The one thing I would caution is that I think it’s hard to win over the hearts of your investors if you are only sharing short bullet points with them. I think it’s better to do a heads + hearts strategy. The top section of your investor update should be the TL;DR with your big headlines, bullet points, KPI’s, financials, and asks – something an investor can scan in 60 seconds or less from her mobile phone.

Below the fold I think is where you win over their hearts with a mix of analysis, storytelling, and strategy. [read paragraphs].

By lifting up the curtain and giving them an honest and oftentimes vulnerable glimpse into your head and heart, I think this is where you form real relationships with your investors.

Truthfully, half of your investors will probably never read the bottom half of the update (and a minority of them will likely tell you it’s a waste of your time) but those that do read the bottom half will appreciate you greatly for taking the time to do it.

The bottom half matters if you are not crushing it. If your top half [KPIs, financials, etc] are kicking butt, it really doesn’t matter whether you win over their hearts. But if you are in the 90 or so percent of startup who are neither ‘crushing it’ nor failing, then the bottom half of your investor update becomes increasingly important.

People invest in people they feel connected to. If you win over enough of their hearts, you’re giving yourself a shot to raise another round even if the numbers aren’t quite where you want them to be.

PS – also agree 100% about being consistent. One of my biggest regrets as a founder was becoming inconsistent when it came to investor updates. In year 1 we did them once a month. Year 2 it became once every other months. By year 3 it was once a quarter and because of it I think relationship and trust suffered.

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By: Alex Iskold

Alex Iskold — Sun, 17 Apr 2016 00:39:53 +0000

Good point, Troy. I just clarified in the post.

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By: Alex Iskold

Alex Iskold — Sun, 17 Apr 2016 00:39:27 +0000

Thank you, Ty! Just included the links.

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By: Troy

Troy — Sat, 16 Apr 2016 23:33:05 +0000

Awesome post! Don’t forget to include the BAD news too. If your updates are always all roses, they will lack credibility. We all have good and bad so be honest and include both!

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By: Ty Danco

Ty Danco — Sat, 16 Apr 2016 21:37:24 +0000

I laughed at your title: it is much like this article Dharmesh Shah and I wrote a few years back: http://onstartups.com/tabid/3339/bid/98311/The-Why-and-How-Of-Updating-Your-Angel-Investors.aspx Needless to say, we agree on all points with you. We also included a companion template, perhaps slightly longer than yours, but still cut from the same cloth: https://tydanco.com/2013/05/17/the-investor-letter-template/

Good to see the classics updated, Alex!

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