Investor Update Email Template (Monthly, UK)

Why send monthly updates

Investor updates keep your backers informed, and they keep your own thinking tidy. They also give investors a record of how you perform, which counts when you raise again. Aaron Harris, writing as a Y Combinator partner, said there seems to be a correlation between the quality and frequency of updates and how good the company and its founders are.

Visible, which makes investor reporting software, recommends monthly updates at seed and pre-seed to show execution speed, and a move to quarterly from Series A. I'd start monthly and keep it going even in a bad month.

If you are a first-time founder, this is a good habit to build before you have much to report. A short update written every month builds up, and in a year you will have a clear history of the company to show anyone you want to raise from. Send the first update soon after the round closes, even if it is brief. It sets the habit and tells your new investors what to expect, including the date each month when they will hear from you.

The order that works

Aaron Harris of Y Combinator suggests putting metrics first, targeted asks near the top, and a short recap of everything else last. Visible's own structure has five parts: an executive summary of two or three sentences, key metrics, highlights and lowlights, asks, and a financial overview.

The template below combines the two. Lead with a short summary and the numbers, put the asks high up so nobody misses them, and finish with the narrative.

Keep the whole update to a length that can be read in under two minutes. Investors hold many companies and read quickly, so put the bottom line first.

Subject line and format

Visible suggests a standard subject line: company name, 'Investor Update', the month and year, and one key highlight. That makes updates easy to search for later. Send the update as the body of the email, with no PDF or deck, and use bullet points so it can be read quickly.

Subject: [Company] Investor Update, [Month] [Year], [one-line highlight]

Use plain text where you can. It reads well on a phone, it is easy to search and it avoids the friction of opening an attachment. Add a link to a longer deck only if someone asks for more detail.

The plain-text template, part one

Hi all,

Summary: [Two or three sentences. How did the month go and why?]

Metrics: Cash in bank: £[x]. Net burn this month: £[x]. Runway: [x] months. Revenue or MRR: £[x] ([+/-x%] on last month). [Two or three numbers that matter for your business, such as customers, active users, pipeline or churn.]

Asks: 1. [A specific request, such as an introduction to a named type of company or a role you are hiring for, with a short description they can forward.] 2. [A second request, if you have one.]

The plain-text template, part two

Highlights: [Three bullets. Customers signed, product shipped, key hires, press.]

Lowlights: [One to three bullets. What went wrong, why, and what you are doing about it.]

Next month: [Two or three goals, so investors can check them next time.]

Thanks, [Your name]

Fill in every line, even for a quiet month. A short update that arrives on time is worth more than a long one that arrives late. If you have nothing for a section, write 'nothing this month' so readers know it was not forgotten.

Which metrics to include

Visible says every update should carry cash on hand, monthly burn and runway in months, plus a few measures that suit your model. Its examples are MRR, churn and customer acquisition cost for software, GMV and take rate for marketplaces, and active users and retention for consumer apps.

Choose a small set and keep them the same each month. Y Combinator's advice is to define metrics clearly and track them consistently, so investors can see the trend. Add a line on how you calculate each one the first time.

Write the figures in the same order every month. If a number goes down, leave it in. Dropping a metric when it looks bad is the quickest way to lose an investor's trust in the rest of the update. If you are pre-revenue, use leading measures instead: customer interviews held, pilots live, waitlist size, prototype usage or letters of intent. Choose figures that show movement toward the milestone you told investors you would reach.

Make your asks specific

Y Combinator's point is that investors are a source of experience, advice and networks as well as money. Use that. Typical asks cover closing deals, finding talent and preparing for the next round.

Visible recommends one to three asks per update, written so an investor can act at once. 'We need a senior engineer with fintech experience' gets answers. 'Any intros welcome' gets none. I'd include the job description or the company names in the email so it can be forwarded as it stands.

Follow up on asks in the next update. If an investor made an introduction, say what came of it. People help again when they see that their help led somewhere.

Bad news, timing and who to send to

Visible's guidance is that sharing bad news is a key part of building trust with your investors. I'd state what went wrong, why it happened, what you plan to do and what it means for runway. Investors can handle problems. They struggle with surprises that arrive late. If runway drops below six months, Visible suggests moving to monthly or fortnightly updates.

Send it to everyone on your cap table, and consider a separate, more detailed note for your lead. If you are still looking for backers, InvestorUniverse can show you the UK investors who fit your stage. This is general information, not financial advice.

Read the update once more before you send it and ask whether you would be comfortable if every recipient forwarded it. If the answer is no, think about what you are leaving out, and whether it belongs in a call instead. Pick a fixed day, such as the first Monday of each month, and stick to it. Regular timing becomes part of how investors judge you, and it lets them plan to look out for your email.