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Startup Investor Update

A monthly investor update email that leads with key numbers, cash and runway, then specific asks, highlights, lowlights, thanks and next month's goals.

Updated
  • investor updates
  • fundraising
  • runway
  • startups
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About this document

A startup investor update is a regular email from the founders to the people who have invested, reporting the key numbers, cash and runway, and asking for specific help. This version is laid out to paste into the body of an email, with tables for metrics, cash and next month's goals.

Send the startup investor update every month while the company is young, including when the numbers are down. Investors who hear from you regularly are more likely to help when you ask and to invest again. When the round closes and you are ready to tell the public, use the startup funding announcement. Treat updates as confidential and send them only to investors and advisors.

How to fill it in

  1. Fill in the same numbers. Use the same one to three metrics every month, with this month, last month and the change. Add a chart of the main number by month.
  2. Work out cash and runway. Enter cash in the bank and net burn, meaning money spent minus money earned. Runway in months is cash divided by net burn.
  3. Make two or three asks. Name the exact person, company or kind of help you need, such as an introduction to a specific buyer or a candidate for a named role.
  4. Report honestly and send. List highlights and lowlights with what you are doing about each, thank people by name, and set next month's goals. Paste it into the email body.
Startup Investor Update

Investor Update: [Month Year]

[Company name] · Sent to current investors and advisors · Paste this into the body of the email

Hi everyone,

[One sentence on the month. For example: March was our best month yet. Revenue grew 18% and we signed our first hospital system.]

Key numbers

Use the same one to three numbers every month, even when they are down. For a live software product, include revenue and active users.

Metric

This month

Last month

Change

[Monthly recurring revenue]

[$]

[$]

[+ or − %]

[Weekly active users]

[#]

[#]

[+ or − %]

[Third metric, if any]

[ ]

[ ]

[ ]

[Add a chart of your main number by month, not a running total.]

Cash

Cash in the bank

[$]

Net burn this month

[$ spent minus $ earned]

Months of runway

[Cash divided by net burn]

Asks

Be specific: name the person, company or kind of help. Two or three asks at most.

  1. [An introduction. For example: the head of revenue cycle at a hospital system with more than 500 beds.]

  2. [A hire. For example: a senior backend engineer who has worked with health records data.]

  3. [Advice. For example: how you have seen startups price a paid pilot for a large enterprise.]

Highlights

  • [What went well, with a number where you have one.]

  • [A customer, launch, hire or milestone.]

Lowlights

  • [What went badly or is keeping you up at night, and what you are doing about it.]

Thank you

[Name the investors or advisors who helped this month and what they did. For example: thanks to Priya for the introduction to a regional hospital group.]

Goals for next month

Goal

Target

[Goal]

[Number or date]

[Goal]

[Number or date]

Next month, report against these goals first.

Thanks,

[Your name]
[Title, Company]

Page 1 of 1277 words

Frequently asked questions

How often should a startup send investor updates?

Monthly is the common rhythm for early-stage startups, and quarterly is common after a Series A. Pick a schedule and keep it. A gap in updates often worries investors more than a bad month does.

What should a startup investor update include?

A short summary, the same key metrics each time, cash and runway, specific asks, highlights, lowlights, thanks and goals for the next period. Put the numbers and asks near the top, because many investors read only the first screen.

How do you calculate startup runway?

Runway is cash in the bank divided by monthly net burn, the amount you spend minus the revenue you collect each month. For example, $600,000 in the bank and $50,000 of net burn gives 12 months of runway.

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