Investor Report Guide: What to Include Based on the Startup's Stage

In a previous installment, we discussed the importance of maintaining effective communication with your investors as a key element for driving the growth and success of your startup. In this installment, we want to share some important elements you should include in your communication with them and how they adapt to each phase of your startup, ensuring continuous investor support, which is crucial for survival and expansion into competitive markets. In this piece, we detail the relevance of these deliverables and provide examples of how to put them into practice.

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Idea Stage

This reporting stage covers all the qualitative aspects of the startup, where the focus is on finding product-market fit. For this reason, the reports should center on sharing information about the validation and customer discovery process, meaning they should describe and delve into those initial customers who are willing to pay for the product or service.

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Since there are no recurring sales yet, the goal is to keep investors (family, friends, and fools) updated on the progress and challenges encountered, how they are being addressed, and whether any support is needed to move forward. This can be shared in the following way:

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¡Hello xxx!

Greeting (opcional)

Learnings:

Last week, we acquired 5 new customers (describe them and include recurrence if applicable: monthly, one-time payment) [at this stage, the startup is still validating the model, so there may be changes in revenue recurrence].

We also encountered some challenges, which we will share with you in detail:

• Customer Acquisition: The sales process is taking longer than expected given the ticket price (describe in detail).
• Retention: Customers are canceling after a certain period due to difficulties in using the product/service... (elaborate further).

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This type of report should demonstrate how the team is deepening its understanding of the market and using these learnings to improve the value proposition. With this information, investors gain a broad view of the team's execution capabilities and the development of the startup, as this is a stage focused on accelerating the learning process. One method the team can apply is the well-known Lean Startup approach, "which teaches you how to manage and direct a startup, when to pivot and when to persevere, and how to grow a business with the maximum possible acceleration." You can explore the method further here.

The goal at this stage is to accelerate market learning in order to quickly iterate and fit the product or service to the market. It is recommended that reports at this stage be delivered on a weekly basis.

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Pre-Seed and Seed Stage

At these stages, reports begin to show traction and demonstrate the scalability of the product, its adoption by the market, and growth projections. This is where the team’s execution capabilities start to be showcased, along with the startup's direction regarding the business model. While there may still be changes in the model at this point, a clear path towards growth starts to emerge.

To maintain communication with investors, the startup should integrate metrics into its reports that highlight the product's traction and how it is reflected in the numbers. This includes:

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¡Hello xxx!

Greeting (opcional)

Highlights

• Retention: We haven't experienced any churn, but we found that customers prefer to have contact with a person rather than using the automated inquiry system. We are looking for a solution, as this is hindering our ability to scale.
• Customer Acquisition: Word of mouth is working very well thanks to the referral program. We will continue with this strategy.

Lowlights

• Software Development: Progressing towards milestone XX.

Revenue Metrics

Retention Metrics

Financial Metrics

These metrics should be accompanied by an explanation, outlining the reasons for changes in the metrics and the potential causes behind them.

Support

• We need more introductions to potential customers. Please send any suggestions to xxx@xxx.com.

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In addition to these metrics, it is also valuable to share the strategies being used to attract customers, which provides insight into the go-to-market strategy in practice. Likewise, tracking the milestones set and how the challenges to achieving them are being addressed should be included.

Recommended frequency: monthly.

Growth-Expansion Stage (Serie A, B, C…)

From this stage onward, the relationship with investors focuses on sharing progress and strategies for scaling the product or service. To achieve this, the startup should provide relevant internal information as well as metrics that allow for tracking these plans.

For example:

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Summary of Achievements from the Previous Reporting Period

[Detail the most relevant points as applicable, and divide between Highlights and Lowlights.]

Highlights:

• Software Development: [Detail the most relevant progress as applicable.]
• Hiring: [Detail the most relevant updates as applicable.]
• Event Participation: [Detail the most relevant participation and outcomes as applicable.]
• Etc.

Lowlights:

• [Detail any challenges or setbacks as applicable.]

Performance

Revenue

• ‍Annual Recurring Revenue (ARR)
• Monthly Recurring Revenue (MRR)
• YoY Growth % 
• Gross Merchandise Volume (GMV)
• Take rate %
• Revenue
• Annual Contract Value (ACV)

Customers and Retention

• ‍Total Customers
• New Customers
• Burn rate
• Retention
• Net revenue retention (NRR)
• Net Promoter Score (NPS)

Unit economics

• ‍Lifetime Value (LTV)
• Customer Acquisition Cost (CAC)
• LTV / CAC ratio
• CAC payback

Team

Capital Efficiency Metrics

• ‍ARR per Employee
• Burn Multiple
• Cash Conversion Score

Financial Metrics

• ‍Cash in hand
• Burn rate
• Runway

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As Applicable to the Startup Model. In some cases, specific metrics can be created to measure the impact of the model, while not all of these metrics may apply in every situation. Understanding how you will measure the progress of your startup is also important from day one.

Remember that these metrics should be accompanied by an explanation, outlining the reasons for changes in the metrics and the potential causes behind them.

Ask for help

• How the Investor Can Contribute: Connections, referrals, advisors, among others.

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At this stage of maturity, quarterly financial statements are typically included. Recommended frequency: quarterly. Additionally, the formation of specialized teams based on the needs of each stage should be reflected in the milestones achieved and, consequently, in the results.

In summary, this type of transparent, data-driven communication strengthens relationships with investors by demonstrating competent, results-oriented management, measuring execution, and systematically sharing relevant information in a timely manner. As the startup grows, it is essential to communicate not only growth in terms of users and customers but also how this growth is supported by scalable infrastructures and processes.

Incorporating these key aspects into investor reports according to the startup’s development stage not only ensures effective communication but also strengthens the relationship with investors by aligning their expectations with the company's achievements and challenges. Maintaining strategic transparency and demonstrating effective management are the foundation for building a successful and sustainable company, including everyone involved in the process.