Investor Update Template from the Founder Institute
Fundraising doesn't end with cashing in the checks. Regular updates to your investors are crucial. They're instrumental in maintaining healthy relationships and keeping investors in the loop about your company's status.
Since 2009, we've reviewed countless investor updates at the Founder Institute. We know what works, what doesn't, and we're particularly concerned about the common scenario: no updates at all. Writing an exceptional update is straightforward, and here's how you can do it in just 5 minutes.
The 5 Minute Template
Investors are busy. Your update needs to be concise and to the point. Here's what an ideal update looks like:
SUBJECT: SaaSCo Investor Update, March 2020
Hello,
It has been a busy time. We have been working to close our first major license with IBM, which will get us to cash flow break-even, and we have exchanged a final draft of the agreement this week. Morale is high as we work to get the license done, and we just hired a new senior developer to manage the integration of the license, bringing our tech team to 5 full-time employees.
Gartner just published research that the market for our server technology will grow to $1 billion within five years, and our closest competitor just raised a small seed round of $1.2 MM. After closing our seed round in December, the company has 12 months of runway with our full hiring plan, and we can cut back the hiring to survive 18 months if the IBM license fails to close. If you know anyone in the server business at IBM, please send us their Linkedin profile so that we may reach out to help close the licensing deal.
[PERFORMANCE]
We have accelerated Product, which has come at the cost of slowing down our traction until the IBM deal closes.
1 to 5 Performance Ratings:
< 2 (4 Last) - Runway
> 5 (4 Last) - Team
> 4 (2 Last) - Product
= 4 (4 Last) - Traction
= 0 (0 Last) - Fundraising
[ECONOMICS]
As a result of industry players hearing about the potential IBM deal, the number of New Licensing Leads that we are attracting per week has doubled since the beginning of the month.
New Licensing Leads per Week:
> 53 (202 Active Leads, > 12% Leads in Closing Phase) - Week 1
= 42 (163 Active Leads, = 08% Leads in Closing Phase) - Week 2
> 41 (135 Active Leads, > 09% Leads in Closing Phase) - Week 3
> 22 (123 Active Leads, = 06% Leads in Closing Phase) - Week 4
[NEEDS]
We need an introduction to anyone that you know at IBM, preferably in the server business. You can either email me back with the Linkedin profile of your contact or please use the sample introduction email below:
Dear ____,
I would like to introduce you to Jane, CEO of SaaSCo. They develop server software, and IBM is working to license their technology to improve server efficiency. Jane is looking to build more contacts within IBM, and, as I am an investor, I would like to introduce you both. I hope that this introduction proves useful.
Thank you for your support. - Jane
(see the full guidelines for this “5 Minute Investor Update Template”, including line-by-line tips, at http://fi.co/investor-update)
Consistency in Sending Updates:
Frequency is key. Early-stage companies should aim for monthly updates, while those in active fundraising or requiring immediate aid could benefit from bi-weekly communications. Stick to a schedule, prefer mid-week dispatches, and avoid Fridays for maximum engagement.
Even if circumstances cause a delay or a missed update, maintain communication. Consistency keeps your investors connected, informed, and ready to support when called upon.
Happy updating!