A Great Template for Effective Angel Investor Updates

From my experience, very few entrepreneurs and investors communicate effectively, but one of my recent investments sends out bi-weekly updates that have been great for both the entrepreneur and the investors. I think it’s an excellent template for angel investor updates and here’s how to follow it:

  1. Frequency – Bi-weekly to monthly depending on how fast the business is moving
  2. Audience – Current and prospective investors, mentors, board members and very close family and friends
  3. Length – Short and sweet. Use bullet points!
  4. Information to Include
    • Fundraising Status – Is the company still raising and how much do they need? 
    • Sales, Marketing and Distribution – Key new clients and partners, status of major deals in pipeline, important new leads
    • Key Promotional Events – Important upcoming trade shows, community events, etc 
    • Industry Updates – New market research reports or major industry news
    • Product Updates – Major improvements or additions
    • Staff Updates – New hires and job postings
    • Mergers and Acquisition Offers – No confidential details, just basic info
    • Requests for Help! – Does the company need feedback? More investors? Connection to prospects, suppliers, distributors, etc? Most investors want to help, but they need specific requests.

NOTE: Quarterly financials should also be sent to investors.

What Outcomes Can This Produce?

  1. New Investors – More progress = more investors
  2. New Connections – You never know where investor, employee, customer and other connections will come from.
  3. Less Conflict – Potential conflicts can be addressed before they blow out of proportion.
  4. More Focus – Entrepreneurs can focus on business instead of investor questions.

So there you have it — an informed network is an effective network.

Any other important information that should be included? Do you have any experience with effective / ineffective angel investor communication? Leave a comment.

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