Investor Updates: Best Practices

In the dynamic world of technology and startups, investor updates are more than a courtesy—they are a crucial communication tool that can make or break relationships with those who believe in your vision. Whether you’re leading a high-growth SaaS company or carving out a niche in edtech, keeping your investors informed is both an art and a science. Done well, these updates foster trust, transparency, and ongoing support. Done poorly, they can lead to confusion, frustration, and even the withdrawal of critical backing.

Why Investor Updates Matter

Investor updates serve as a bridge between founders and those who place their trust—and capital—into a company’s future. For many founders, especially those new to the process or from underrepresented backgrounds in tech, the idea of writing regular updates can feel intimidating. Yet, it is precisely in these moments where clarity and honesty shine brightest. Investors are not merely ATMs; they are partners, mentors, and, often, your most ardent advocates. Keeping them in the loop is a sign of respect and professionalism.

For women in technology and neurodivergent founders, investor updates are also an opportunity to reclaim the narrative. They allow you to highlight your wins, contextualize your challenges, and showcase the unique perspectives you bring to the table. In a landscape where every advantage matters, a well-crafted update can be a powerful lever for influence and credibility.

The Anatomy of an Effective Investor Update

There is no one-size-fits-all template, but the most impactful investor updates share a few common elements:

• Consistency: Send updates on a regular schedule—monthly or quarterly, depending on your stage and pace of change.
• Transparency: Share both the good and the bad. Investors appreciate candor and are often more understanding than founders expect.
• Actionable Metrics: Focus on key performance indicators (KPIs) that matter to your business. Avoid vanity metrics.
• Clear Asks: If you need help, be specific about how investors can assist.
• Personal Touch: Remember, your company is not just a set of numbers. Share stories, customer quotes, or team highlights.

The best investor updates don’t just inform—they invite collaboration, spark solutions, and strengthen bonds.

Structuring Your Update

While style may vary, a logical structure helps ensure clarity. Here’s a time-tested outline:

1. Brief Recap

Begin with a concise summary of the past period. This helps set the stage for what follows. Be honest, but also optimistic where warranted. For example:

“This month, our engineering team shipped the long-awaited accessibility features for our learning platform, a cornerstone for our neurodivergent users. While user signups grew by 8%, we faced some challenges in onboarding efficiency.”

2. Key Metrics

Present your most important numbers. Growth, retention, burn rate, runway, and customer satisfaction scores are common. Use bullet points or a simple table for readability. Focus on trends, not just raw figures.

Sample Metrics Section:

• Monthly Active Users: 12,400 (+7% MoM)
• Churn Rate: 2.1% (steady)
• Runway: 13 months
• New Partnerships: 2 signed (including partnership with Women in Tech Initiative)

3. Wins

Highlight achievements, both big and small. Share product launches, customer testimonials, press coverage, or team milestones. This is your chance to remind investors why they bet on you.

“A personal note—our lead engineer, who is on the autism spectrum, spearheaded the new integration with Google Classroom, streamlining the experience for all learners.”

4. Challenges

Don’t shy away from difficulties. Investors appreciate founders who are forthright about obstacles. Present issues clearly, but with context and, where possible, your plan for resolution.

“Churn remains higher than our target, particularly among new users with ADHD. We are piloting a new onboarding coach, developed in partnership with neurodiversity consultants, to address this.”

5. Asks

If you need introductions, advice, or resources, state this plainly. Investors want to help, but they can only do so if you articulate your needs.

• Introductions needed: Edtech VCs with K-12 experience
• Advice sought: Best practices for scaling a distributed neurodiverse team

6. Closing Thoughts

End with gratitude. Thank your investors for their support and reaffirm your commitment to the mission. A warm, human touch goes a long way.

Best Practices for Building Trust

There is no substitute for authenticity in investor communications. Trust is built incrementally, through each update, call, and meeting. Here are a few ways to deepen that trust:

• Be Ahead of the Curve: Don’t wait for bad news to surface. Share potential risks before they become crises.
• Contextualize the Data: Numbers alone are not enough. Help investors understand the “why” behind the metrics.
• Highlight Team and Culture: Investors back people, not just business models. Celebrate diverse voices on your team and share how your culture is evolving.
• Make it Accessible: Consider the needs of your investors, especially if they come from non-technical backgrounds. Use plain language and avoid jargon where possible.

“We invest in founders, not just ideas. Your openness and willingness to share the journey—warts and all—builds the foundation for long-term partnership.”

Special Considerations for Women and Neurodivergent Founders

For women and neurodivergent individuals in technology, the investor update takes on additional significance. It’s a chance to challenge stereotypes and demonstrate the unique value you bring as a founder. Don’t be afraid to highlight how your lived experience informs product decisions, company culture, and customer empathy.

For example: If you’re building tools for neurodiverse learners, share stories about how your own neurodivergence shapes your design philosophy. If your team is predominantly women, discuss how that influences hiring, mentorship, and product-market fit. These are not footnotes—they are competitive advantages.

“Our product roadmap is shaped by our lived experience as neuroatypical founders. We continue to challenge the industry’s assumptions about how learning technology should be built and for whom.”

Empathy in Communication

Investor updates are an opportunity to model the empathy and inclusivity you want to see in the world. Use people-first language, acknowledge challenges faced by underrepresented groups, and share progress on diversity and inclusion initiatives. Investors increasingly want to back companies that align with their values; your updates can reinforce this alignment.

Leveraging Technology for Better Updates

Today’s founders have access to a wealth of tools that can make investor updates more effective—and less time-consuming. From automated dashboards to collaborative writing apps, technology can help you present data clearly, incorporate feedback, and maintain a consistent cadence.

Recommended Tools:

• Notion or Coda: For collaborative drafting and archiving past updates.
• ChartMogul or Baremetrics: For automated metric tracking and easy visualizations.
• Mailchimp or Substack: For professional delivery and analytics on who reads your updates.
• Otter.ai or Descript: For transcribing audio/video updates, especially helpful for founders who prefer to dictate their thoughts.

Remember, the best tool is the one you’ll actually use. Simplicity and consistency trump complexity.

Common Mistakes to Avoid

Even experienced founders fall into traps that sap the impact of their updates. Avoid these pitfalls:

• Radio Silence: The absence of updates is the loudest message you can send—and it’s rarely a good one.
• Overly Technical Language: Investors come from diverse backgrounds. If your update reads like a product spec, you risk alienating your audience.
• All Sunshine, No Rain: Updates that only report good news come across as disingenuous. Your investors know startups are hard; share the full picture.
• Inconsistent Metrics: Changing KPIs every month makes it hard to track progress or spot trends. Pick your top metrics and stick with them.

“Clarity is kindness. The more straightforward your communication, the easier it is for investors to support you—especially when things get tough.”

Investor Updates as an Educational Tool

Beyond their obvious function, investor updates can also serve as an educational resource. By explaining not just what happened, but why and how, you bring investors along on your journey. This is especially valuable for those new to your market or those who may be less familiar with the realities of building a company in your domain.

For example, a founder working on AI-driven learning platforms might take a moment to explain how recent advances in large language models are impacting product development timelines. This isn’t just information—it’s a mini masterclass that elevates the conversation and positions you as a thought leader.

Creating an Ongoing Dialogue

Great investor updates don’t just go out—they spark responses. Encourage back-and-forth. Ask for feedback, invite questions, and create opportunities for investors to share their expertise. This two-way dialogue transforms passive recipients into active participants.

“Every update is an open invitation to share your insights, advice, and connections. We value your partnership on this journey.”

Final Words: The Heartbeat of Your Startup

An investor update is, at its core, the heartbeat of your startup. It pulses with the energy of progress, the honesty of setbacks, and the collective hope of a shared mission. Whether you’re a seasoned founder or just starting out, whether you lead a team of ten or a hundred, the principles remain the same: communicate with clarity, lead with empathy, and never underestimate the value of trust.

In a world where technology is reshaping how we learn, work, and connect, let your investor updates be a testament to your vision—not just as a founder, but as a steward of innovation, inclusion, and possibility.