∞Direct answer
Direct answer
Send a short note each month. Put key facts and asks at the top. For each main number, say what it means, its date, and its source. Carta lists financial and operating KPIs, news, team notes, and asks as parts of an update. [1] A clear note can help a reader act. It cannot get funds or take the place of legal help.
Pick who gets the note and when
Send to each current backer. Add an adviser only when it helps. Keep a list of who got the note.
Pick a pace you can keep. Each month works for many new firms. Harris says to pick what to show, keep the same facts, and send a note each month. [2]
Keep the same form. A backer can then find cash, gains, risks, and asks with ease.
- The time span and date sent.
- Names or groups that got the note.
- A link to the last note, if it helps.
- One person who checks the facts first.
Put facts a backer can check first
Start with three to five facts. Pick facts that show the work. This may be paid plans, sales, use, cash, or a key hire.
With each main sum, state the rule, date span, source, and past sum. Say if the rule has changed. Keep plans apart from facts.
Carta lists financial and operating KPIs, gains, team news, and asks in its form. [1] Harris says to show growth, cash or burn, how things are, and what help you need. [2]
- Fact name and plain meaning.
- This span, the last span, and the dates.
- The source file or tool and its owner.
- A note on a one-off event or a data gap.
Use this short update form
Keep the main note short. A reader should see it in one go. Techstars uses a short lead, gains, hard news, and two or three asks. [3] Put more links at the end.
Give facts first. Then give their sense. For one case, say paid plans rose from 18 to 24 in July. Name the bill file as your source. Say why that change took place, if you know.
Burn is cash out less cash in. Runway is how long cash may last at this burn. Mark each as fact or plan.
- Subject: firm name — month and year note.
- Lead: one main gain and one main risk.
- Key facts: three to five sums, rules, and sources.
- Work done: what you made, sold, found, or changed.
- Cash: cash date, burn rule, runway, and main bet.
- Risks: what is off plan, the harm, and next test.
- Asks: one to three clear acts, names, or intros.
- Links: only files a reader needs to check or act.
State risks, asks, and file limits
Do not hide bad news. Say what changed, the harm, what you tried, and the next test. Techstars has a place for hard news in its form. [3]
Each ask should be small and clear. Say who can help, why, and what you want. Ask first, then make an intro. An ask does not bind a backer.
Share only what the reader needs. Keep key files in a controlled data room. Carta describes rights and end dates for files in its data room. [4] Get legal, tax, or data help that fits your firm and place.
- What changed and when.
- What is known, not known, and next.
- One clear ask, its why, and a due date.
- A safe link or a way to ask for key files.
FAQ
Frequently asked questions
How often should I send an update?
Each month is a good base if you can keep it. Harris says to send a note each month and use the same facts. [2] Use a new pace only if it fits your stage and readers.
What numbers should I show?
Show a few sums that show the work. Carta names financial and operating KPIs, gains, team news, and asks. [1] Say what each sum means, its date, and its source.
What if I am off plan?
Name the gap and the harm. Say what you found and what you will try next. Keep facts apart from hopes. Techstars puts hard news in its simple form. [3]
Can I add all of my files?
Most times, share just the files the ask needs. Use controlled access for key files. Carta describes rights and end dates for shared files. [4] Ask a good adviser about the rules for your firm.
Will a good note help me get funds?
It can make your work and needs clear. It does not make a fit, do checks, set terms, or promise funds.
REF
Sources
- 1
- 2
Aaron Harris
Investor Updates ↗ - 3
Techstars
Don’t Waste the Slow Days ↗ - 4