Guides · Follow-up and investor relations

How to Build an Investor Reporting and Update Cadence

Investors want to know that something is getting done. At the Family Office Club we hear that question on nearly every panel. When people go quiet, investors start to wonder what is happening with their money and their time.

A simple update rhythm answers that question before it is asked. Here is how I would set one up, based on how we run updates at Family Office Club and what I see investors doing while they decide.

The steps

Step 1. List the questions investors keep asking

I started giving progress updates at Family Office Club because we get so many questions on every panel about whether anything is getting done. Your investors have their own version of that question. Write down what they ask you most. It might be about deal progress, closings, timing or what comes next. Those questions become the outline for every update you send. If you answer the same question three times by phone, it belongs in your next written update. Do this before you write a single report.

Step 2. Pick a rhythm you can keep

Choose how often you will update investors and then keep to it. Monthly and quarterly are common choices, and the right one depends on your deal and your investors. A steady schedule you actually meet beats an ambitious one you skip. I keep my own updates short. One of mine was a four minute video on mandates and closings. Short is easier to produce on time and easier for investors to read or watch. Many sponsors talk to a securities attorney about what to send and how.

Step 3. Report progress and be clear on focus

Each update should say what moved, what closed and what is next. It should also remind people what you do and do not do. We focus on things that are already profitable or cash flowing. That kind of clarity stops wrong questions and wrong expectations. Say your focus plainly each time. Keep the report factual. Stick to what happened and what you plan to do, and leave out anything you cannot back up.

Step 4. Keep your records and filings current

Good reporting depends on clean records behind it. In my own business we close two to six legal contracts and agreements every month. Many sponsors rely on a team that keeps up with every entity that needs updating, so filings stay current. If you track many assets, look at aggregated reporting. Many software vendors do not post prices, and they often price by complexity and net worth, so ask early and compare options.

Step 5. Expect investors to be doing diligence

Between your updates, investors are not idle. On our panels and one-on-one interviews we hear that they are in research mode. They meet over Zoom, make phone calls, get access to data rooms and conduct due diligence. So your reporting should match what they are checking. Keep your data room current. Make sure the numbers in your update match the numbers in your materials. If an investor opens your data room a month after your last update, nothing in it should be out of date.

Step 6. Plan your follow up and keep lists fresh

An update is also a reason to follow up. Decide when you will follow up, what you will say and what you want the person to do next. If you are not clear on when to follow up and what to say, you will not get results. Keep your contact list current too. My team of four works full time just to keep our 42 databases updated, because data goes stale fast. Review who is on your update list each quarter and remove or correct what is out of date.

From my talks

What I have said on this at our events

One thing I see families and investment bankers run into is that good reporting tools are hard to find off the shelf. Because this industry is pretty new, there are not many great aggregated reporting solutions. Some firms spend 300,000 a year just on the IT build out for specialized reporting. So before you promise investors detailed dashboards, decide what you can actually produce with the tools and people you have today. A simple, accurate update that arrives on time beats a fancy report you cannot maintain.

What trips people up

• Going quiet for months and letting investors guess whether anything is getting done.
• Setting a schedule that is too ambitious to keep, then missing it.
• Sending updates that do not answer the questions investors actually ask.
• Letting LLC filings, contracts and data room documents fall out of date.
• Skipping follow up planning, so an update goes out with no clear next step.

Key facts

• My team of four works full time updating our 42 databases, because the data goes stale quickly.
• I close two to six legal contracts and agreements every month within my own balance sheet and business.
• We did 73 one-on-one Zoom video interviews since the pandemic started, and members can find them in the investor portal.

General education only. Not legal, tax or investment advice.

Talk to a securities attorney to explore options around investor reporting obligations, entity maintenance and filings and offering documents. Do not use AI to write your own legal agreements.

Questions about this guide

Related questions

• How do I turn existing investors into repeat investors?You turn investors into repeat investors by earning trust on the first deal and keeping everything simple and clear.
• Do I need an investor portal for my fund?No, many managers do not use a portal when they first start raising a fund.
• What should a quarterly investor letter include?A quarterly investor letter should cover results against plan, cash and burn, anything that went wrong, changes to the cap table or debt, and what you will do next quarter.
• How often should I send investor updates?There is no single rule, but a short update every quarter is a common baseline for private investments, with a quick note in between when something material happens.

Use the dilution calculator alongside this guide.