Running a startup is not for the faint-hearted.
Between chasing revenue targets and managing a team, it's easy to overlook one task: keeping your investors in the loop.
But this is actually one of the most important things you can do.
Because building big businesses normally takes money. Both to establish yourself and grow quickly.
And the easiest least difficult money to get is going to be from your existing investors.
Yes - of course. The business needs to be making progress.
But even if it is growing, many investors won't follow their money if they don't feel part of the journey.
Why investor updates are important.
One of the many joys of investing is being part of the journey. This is especially true for angel investors.
The updates are often the only 'experience' for investors. They won’t be in the all-hands or the product roadmap review.
It’s just those 300 words they get each month. That’s the journey.
So if you really care about them and want them to follow you and give you more money in future, here are four simple things to increase your chances.
1. Be Consistent
Investors need to know they can trust you.
One of the best ways to build that is through consistent communication.
Send updates with the same format each time.
Use a uniform email subject (e.g., "[Business Name] Update | [Time Stamp]") and stick to the same structure. This helps your investors know what to expect and track progress.
Highlight the KPIs in the same spot each time and make it easy for them to search, compare, and follow along.
Consistency and frequency matter. Send updates monthly, even if there isn’t much to report.
A brief “soundbite” is better than going dark. It keeps you top-of-mind and builds that trust.
2. Remind Them Who You Are
Don't assume your investors remember every detail about your business.
They are probably investing in dozens of startups.
Therefore you should start each update with a quick refresher and remind them who you are.
Describe your company and its advantages for success. This also makes your update easier to share if your investors forward it to their network.
"We're building a software platform to help startups automate onboarding. We're serving 200+ customers globally with $3m of ARR"
Clear and punchy. Easy to share.
3. Show, Don’t Tell
Investors want to see progress, not to hear about it.
Charts, graphs, screenshots, and product updates show your business's status.
It will often be a revenue, pipeline, or other lagging chart that says we are kicking goals.
Visuals are powerful. They can show progress in a short amount of time. No one has to sift through long paragraphs.
4. Be Accountable
It can be soul crushing when you don't hit your forecasts.
But most companies fail, and all companies go through hard times. The best founders don’t shy away from it.
Be transparent about the highs and the lows.
Your investors need to know why, whether you missed or exceeded your targets. This builds trust and shows them you’re on top of the situation.
Include a simple breakdown of what you projected versus where you actually are. Take responsibility for the variance. Explain what happened and outline your plan to fix it.
Follow these steps to build trust and give you the best chance of turning your dreams into reality with that next check.