Keep funds flowing using email investor updates

How often do you send investor updates? Frequently? Not at all? Whether you are at an early seed stage, series A, B, or C, investor updates are crucial to keep the funding flowing. Updates are the opportune time to connect with investors and keep them up-to-date on what’s going on with your company. Investing in a company is no small feat. When you give someone thousands of dollars, maybe millions, you’d want to know where that money is going and how your capital is used. They are not only investing in your company, they are investing in you! How are you increasing the value of their investment? Why should they increase their funding? These are the questions an investor update email should answer. At the core, investor updates provide useful information on a startup's or established company's progress. These updates give a business overview with clear and concise information. There should be no misinformation or miscommunication when it comes to investors or stakeholders. Newsletter updates are the perfect opportunity to foster trust and build a strong relationship. Email updates are the best platform to reach all investors and stakeholders directly.

Direct Communication

Communication is the lifeblood of a budding business, especially a newly funded business (like Buttondown!). The best form of communication is direct communication. Email is exactly that! It is one of the top preferred platforms of communication by stakeholders, investors, and consumers (hot tip to remember!). With investors, information is extremely important. You want to be transparent and forthcoming while maintaining expectations. Being honest fosters a healthy relationship with your investors and other stakeholders. Strong investor relationships give an aura of confidence in your progress. The more confident you appear, the more support your investors will supply because they feel secure in your product’s success. There are many topics you can include in your emails. Some of the most important points to hit are business overview, financial updates (the most visible sign of progress to your investors), project updates, and future goals or plans. Just make sure the information is relevant and concisely written. Think of it as a tl;dr email. Avoid essays–provide an informative outline. Throw in attachments like graphs if you want to spice it up.

Scheduling

Updates are needed but how frequently should you send them? Many businesses follow a monthly or quarterly update frequency. While those are common, you need to find a cadence that works for your investors and stakeholders. Whichever frequency you decide upon, you need to commit to the cadence. Consistency is very important. Erratic updates could come off negatively––it may seem like you are unstable and a risky investment. Early-stage startups commonly lean towards a monthly update as they are newly funded. Seed-stage companies have more pressure to reassure their investors and stakeholders on their investment while later-stage businesses may only need to send quarterly updates. Email marketing tools such as surveys are a big help in understanding the ideal frequency. Every investor is different so it’s a good idea to ask them what works best so that you aren’t over-updating, causing them to become disinterested in your company’s emails and, possibly, lose their support. Surveys also open the door for discussion and the chance to deepen your connection with your stakeholders. Another great tool to consider utilizing is scheduling. Scheduling your emails is extremely useful and helps shorten your to-do list (which is probably already a mile long). 

Cost-effective

In the early days, budgets are usually tight, even with investor funding. Newsletters are a great way to maximize your dollar. Email marketing offers powerful tools that help you keep your investors in the loop. With automation, surveys, tags, and analytic tools, you have everything you need to seem organized and professional to your investors. Choosing an email service provider with a variety of marketing tools is a top priority for startups. Buttondown offers a strong range of marketing tools that set budding businesses up for success. Communicating with your investors shouldn’t have to break your budget. Our budget-friendly plans start at only $9/mo. 

Conclusion

Investor updates are more than a status report. They are an opportunity to communicate with your investors and build strong relationships directly. Being transparent with your investors shows you are serious about your efforts to increase their return on investment and that you deserve their trust. Trust is powerful to increase their support in your business and skyrocket you into an exit stage. Strategically using email updates gives you the tools to break down professional barriers and turn your updates into an exciting and engaging conversation. Ultimately, that is the goal. Buttondown turns investor updates into an enjoyable experience–an informative and frank discussion with the people who believe in your vision the most–your investors!