An investor newsletter updates shareholders on company performance and developments. When fully utilized, a monthly newsletter enforces accountability, builds trust, and creates the foundation for future fundraising.
Five Investor Update Best Practices
Investor newsletters add context to key metrics to provide insights that go above and beyond the typical shareholder update. These five principles will help you differentiate your company and build strong investor relations that will endure the journey to exit.
An effective newsletter requires consistency in cadence and quality. A rushed update will be scattered and difficult to follow. Commit to a monthly schedule to avoid scrambling at the final hour.
‘Regular’ does not have to mean bland or restrictive. A schedule creates a foundation that gives you the time to make changes. Prompt delivery of a well-structured newsletter creates a rhythm of engagement that invites two-way communication.
Building trust with your investors requires that you report the good news and the bad.
No one wants to be the bearer of bad news and it’s human nature to sugarcoat hard truths. You must fight this temptation as your investors require transparency, not surprises. It’s a long journey to exit and early-stage investors expect bumps in the road. They will appreciate leaders that communicate problems and take action.
Don’t minimize your victories either. Make sure the newsletter fully reflects company achievements. Seize the opportunity to continue forward momentum and increase investability – good news keeps investors, clients and talent engaged.
Private equity investors are busy, so you need to emphasize what’s most important. Writing detailed information in a short format is deceptively time-consuming. Take time to reflect and make the most out of the window of opportunity.
“Sorry for the long letter, I didn’t have time to write a short one”Blaise Pascal, French mathematician
Precision also means delivering quality information to the right people. Have your data organized and your contacts integrated before starting your newsletter. Don’t just copy-paste information from different sources – build a coherent and scalable approach.
4. Easy to Follow
Your newsletter should follow a logical order. Each section should have a distinct purpose and each newsletter should build on the last. Investors should be able to track important topics across newsletters.
An easy-to-read newsletter will improve investor engagement and demonstrate compliance with shareholder agreements and ESG standards.
5. Bigger Picture
Newsletters don’t exist in a vacuum. They’re part of your roadmap to exit and operate within the context of company goals and corporate governance.
Your newsletter should connect the past month to the company’s future. Pull together key developments to build confidence and momentum towards your destination. Consider augmenting your newsletter with a digital event, investors will welcome the opportunity to engage.
The Complete Investor Update
A regular, transparent, and engaging newsletter keeps investors informed while demonstrating the discipline required to move the company in the right direction. Keep these guidelines in mind to build trust and investability as you strengthen investor relations.
Create your Investor Newsletter Today
Eurostep Digital’s Newsletter builds strong IR with business angels, family offices, VC funds and other investors. A range of ready-to-go features make it easy to engage investors today:
- Intuitive template that is easy to use while meeting the needs of your investors.
- Integrated contacts to report to the right people in real-time from a single location.
- Multi-lingual across English, French, German, Italian, Portuguese and Spanish.
- Document library makes it easy to access information and attach files to your newsletter.
- Digital Events augment your newsletter and prepare investors for upcoming engagements.