Investor Update Template

Periodically founders ask me for an investor update email template. The specific format doesn't matter that much but I think there are certain best practices.

1) Update investors monthly

2) Include the good news AND the bad news.

3) Include KPIs and how they have changed over time

4) Include a brief summary at the top and dig into details down below. Make it easy for busy people to get the key details.

5) Include what your current needs are and ask investors for help.

6) Publicly thank investors who help

7)  Hold investors accountable for their promises

8) Be absolutely clear about your cash on hand, burn rate and projects runway.

9) cc (as opposed to bcc) investors so your investor group can hold themselves accountable

10) Get out and catch up with your investors IRL as often as possible given hectic schedules.

 

Here is a basic template you can take and modify:

Dear Investors:

I hope you all had a great month. Ours was challenging but also quite rewarding.

tl;dr: As a result of the optimization efforts we began in Q1 this year sales are up X% MoM and and XX% Yoy. We are wrapping up negotiations with BIG BRAND and anticipate to see revenue from that partnership as early as next month. Our VP of engineering left due to a family issue this month and we are actively recruiting another candidate. We would appreciate introductions to any strong engineering candidates. This month we enter the slow season in our industry and while we expect YoY growth to continue apace, We anticipate to be flat MoM.

Here is a link to my calendar. I block every Tuesday evening to meet with investors, please grab a slot. If none of these work for you shoot me an email and we’ll find a time to catch-up

BURN/RUNWAY: We have $720,000 in the bank. Our net-burn this month was $85,000, a 10% decrease MoM. With anticipated increase in salary expense as we grow the team, we believe we have only 6 months of runway remaining. We are entering early discussions around a bridge.

METRICS

       Revenue: $X up X% MoM

       MAU: 1.7M up 35% MoM

       User retention: X

       Etc.

Narrative explaining changes

Q2 MARKETING PLAN  

The Q2 marketing plan is attached below. In brief we are cutting back on our social media campaigns as they’ve proven inefficient. In exchange, we are doubling down on our radio and email strategies both of which have exceeded our expectations. We owe this success in large part to Jennifer Markets who has revamped our channels extensively over the last 2 months

Blended CAC: X%, which is down X% MoM

Blended LTV: X% which is up Y% 

PENDING PARTNERSHIPS

Big Brand partnership, Small Brand Partnership 1, Small Brand Partnership 2, Etc.

Narrative about the status of each.

Big Brand Partnership: 95% chance to close by 3/15/17. Worth $3M per year.

Small Brand Partnership 1 75% chance to close by 3/21/17. Worth $200K per year

Small Brand Partnership 2 50% chance to close by 4/15/17. Worth $75K per year

These partnerships are all pilot phase partnerships and can grow substantially as they mature into 2018

TEAM/HIRING

As mentioned we lost VP of Engineering. We did manage to grow the team adding Suzy Engineer, Adam data scientist and three junior members to the content development team. This quarter we need to add three additional full stack engineers

PRESS

Here are all the links to press we received this month.

ASKS

As mentioned above we are in need of a VP of engineering in relatively short order. We’re looking for someone with X years of experience who can grow into the role. Here is a link to the job description you can circulate within your networks. (John Doe, I’d love to speak with the recruiter you mentioned over coffee)

As we begin having conversations around the bridge, we would appreciate introductions you can make to new investors you think are a good fit. I’ll be reaching out to each one of you about your pro-rata.

The partnership with BIG BRAND is looking to be a major success. Please tell me if you know of any similarly placed BRANDS. This will be a great case study for how we can make an impact for brands.

THANKS

I would like to thank Jane Doe for really coming through for us with BIG BRAND. Her introduction and assistance were invaluable and have built value for us all. I’d also like to thank John Smith for helping us find, interview and hire Suzy Engineers.  I’d also like to thank Jake for promising to introduce us to a prospective VP of Engineering last month [hint to Jake, remember to introduce us soon :)]