Running a startup? You should be writing investor updates.

Investor updates are perhaps the single most underutilized communications tool by founders. Only about half of the startups in my investment portfolio send me regular updates. Among my clients, it’s often mentioned as one of those “ugh I should get on that” type of things that lingers around spot 13 on a top-10 to-do list.

Silence equals non-existence. Stay present among your most important audience.

For early-stage companies, define your audience broadly. Include not just investors, but all those people you met at conferences and through your network and customer discovery calls—anyone who might become valuable supporters of your startup (investors, partners, thought leaders, potential hires, customers).

When the time is right to activate them, these updates will have done a lot of selling for you. Later, as your startup grows and matures, you’ll want to write separate updates for investors and for your broader audience.

Your key goal is to demonstrate progress. Everyone loves to hear about forward motion. It builds excitement. If your train sounds like it’s leaving the station, people will want to jump on board. This forward motion is a combination of your startup’s progress and industry news that support your thesis. This makes it a marketing document—but not a license to obfuscate. Be transparent. Own up to mistakes and bad news upfront, with frank assessments and an action plan forward. That builds credibility.

How often should I send an update?

A quarterly update is a good default. Monthly is a good idea if you’re in a fast-moving industry or stage. Every 6 or 12 months can work if it’s early days of a long-term deep tech project. If something really bad happens, consider sending an email immediately to your investors (not the broader list). No investor wants to find out months later that the results of your crucial patient trial was disastrous. And great news? It’s a bit of a flex to leave it to your next regularly-scheduled email, but blockbuster news may warrant special updates to your entire list.

What should it look like?

Pick a style and stick with it. Some founders write plain-text email, others pick a more graphic and visually structured approach. Pick something that works and stick with it. It’s part of your personal and corporate branding.

Should I send it as an email or an attachment?

I lean towards email. Don’t make people to go the extra step to open an attachment. Plus, that makes a few personal words at the beginning and end feel more natural.

How long should it be?

Short. Send a clear and confident 300-500 words.

What should I include?

Here’s a great template structure:

Vision Summary. People are busy and can always use a refresher about why they should be excited about your company. This is particularly valuable if you’ve shifted your focus in any way since the last update. One sentence might be enough. This is a great spot to add context such as links to articles in prominent publications that highlight positive trends for your industry and/or support your company thesis. If you want to expand upon industry trends, consider adding a Context section between the Challenges and Requests section.

Highlights. A few bullet points about the key things that have happened since the last update. This could be partnerships, product launches, research results, funding, hiring, external feedback, or marketing initiatives. If you’re a bit further along and have KPIs or metrics that you are following (sales, revenue, customer count, business development pipeline value), put them here.

This is also a good place to highlight key initiatives and areas of focus for the coming quarter. If you have several key upcoming events/milestones, consider a What’s Next section above Requests.

Challenges. What’s gone wrong? What were you expecting that didn’t happen? Be transparent and describe what you’re doing to address the issues.

Requests. Are you searching for a key new hire? Looking for partnership introductions? Ask for help. It works. This is also a good place to mention upcoming fundraises—although the key for that is not to sound desperate, but you’re always looking for ‘strategic investor additions to fill out an upcoming round.’

Am I missing anything, or do you have investor update experiences to share? Let me know!

And for any founder not yet sending these updates: Don’t overthink it. Block out 30 minutes and make yourself complete a draft within that time. Share it with a few colleagues or trusted advisors, and you’re good to go.