Did you know that around 55.5% of investors read the updates that Seedrs Alumni companies send? Or that 70% of investors are more likely to re-invest in a company if they receive regular, informative updates? Perhaps that’s because investors feel a greater connection with a company if they know how capital’s being spent on growing the business and how the company is performing in general. So here are a few hints and tips on how to create engaging updates – and how often to send them out.
Getting the right frequency
Aim to send out a brief update on a monthly basis if possible, or quarterly if you are stretched for time. With the emphasis on ‘quick’, we’ve created a simple template to help Seedrs Alumni businesses create updates in around just ten minutes and under. If you’re a Seedrs Alumni company, look out for our update reminder emails – they often include a link to an update template.
Constructing a robust update
If you’d rather do your own thing and create updates Business issues from scratch, a good way to start is to think about building a framework using a few subheads, for example:
- New products/releases
- Press coverage
- Operations/new hires
- Business issues/solutions
- Future plans/what’s next
Just choose the subheads that are relevant to your business and what’s been happening recently.
Then see if you can put together two or three bullet points underneath each subhead. Each bullet point will ideally be just a sentence or two long.
HELP! Requests for assistance
From time to time you may be in need a little assistance. Before you consider paying for help, why not reach out to your investors? They have a vested interest in your business succeeding, and they may relish the opportunity to get involved – especially if it’s advice or know-how you’re seeking.
Pre-emption rights and good business sense
Let your existing investors know about any new financing round, after all, they may well want to invest in your company again.
What’s more, it may be in your small print to let them know in advance of any future round. In fact, our terms for businesses that are funding on Seedrs include pre-emption rights. These ensure that existing investors have the right (but not the obligation) to invest in future fundraising rounds of the company. That’s so that they have the opportunity to maintain their level of shareholding in a company.
The ultimate update
If your early-stage business grows and shows a lot of potential, it’s likely that other businesses will offer to buy it. As and when this happens, make sure you send an update explaining things to your investors.