What does a good investor update look like?

“So most people, if you're investing in a company, and we talk about this a lot on this podcast and investing to learn, just because a company is giving information rights, it doesn't necessarily mean that you'll have them. And it's not the same thing as an investor update. An investor update is much more nuanced. It usually has a lot more kind of commentary to it, and you almost never see it contractually agreed to. In fact, I don't think I've ever seen it contractually agreed to in a SAFE 1 and 2 docs.”

“And so especially if it's a situation where your VC or your investor, you're hoping that they're going to follow on, right? Keeping them in the loop and keeping them excited about the business is super important. And so making sure that they have that information really back So if they're asking you questions like, "Can we get an update?" It's a great indication that there's more work for you to do to more proactively communicate. Also, then you don't have to have awkward verbal conversations with them about the state of your business. You can just send them updates and that will kind of update them along that journey.”

“Yeah, it's an interesting one. I mean, I think if you're a founder, it's a lot to pull together every single month. I think it's really valuable to do, but I respect on the founder side, like, oh, monthly, no, but like quarterly, that's doable. I think it's really valuable to do even, even monthly. Like I think even just like a light investor update, if you're tracking your business pretty closely, which hopefully you are, like you should be able to report kind of key updates. But like we do quarterly updates as a fund and like they are, they're a time investment to put together and make sure that the right information is flowing through. So I don't know, I don't know that I would encourage founders to contractually agree to doing investor updates. No, we shouldn't, but I want it. But it would be great. It'd be great. Yeah.”