Thread by @heyecs

Proper investor ↔ founder communication is critical.

We send Basewell updates to investors on the 1st of the month—every month—regardless of holidays or weekends.

Here's the format that works for us:

1️⃣ Intro

Use names. Keep things snappy. Don't hide from what's important.

If anything needs to be said ASAP, say it first thing.

↳ {first_name}
↳ Brief recap of last month
↳ Immediate points that need to be brought to the top
↳ Transition to body content

That's it.

2️⃣ Onboarding, Usage, Customer Traction

↳ Keep data concise with exact numbers
↳ Use charts/graphs to clearly present growth
↳ Words = bad, numbers = good

I like to add goals and historical context in each graph, so numbers are presented against YTD growth & against targets.

3️⃣ Revenue

↳ Realized ($ processed)
↳ Pipeline (what's expected)
↳ Goals (last month, upcoming)
↳ Current MRR
↳ Current ACV (annual contract value)

Don't overcomplicate this section!

4️⃣ Expenses (burn)

↳ Top-line number
↳ Categorical breakdown

I use a pie chart and table to break down data on a granular level. (This might not be necessary for you, but my default is to err on the side of transparency.)

Also, in regards to burn, @jaltma had a great point that many founders miss: burn is burn. Don't explain away "one-time expenses" because you'll *always* have one-time expenses.

https://twitter.com/jaltma/status/1651670020286472193?s=20

Expanding on that thought: whenever you present numbers, just present the numbers.

Trying to explain or justify down revenue, missed targets, or slow growth isn't helpful.

Complicated explanations look like you're not taking responsibility trying to hide the truth.

When presenting numbers, let them speak on their own.

"Churn increased to 11.3%, MRR increased to $54,630.24 and DAU decreased by 3.47% to 4,293" should be unencumbered data.

If you feel compelled to add context, do so towards the end of your update.

5️⃣ Other traction

This might be waitlist growth, proprietary features, other IP that's been developed, or other relevant data.

What's important here is to ensure any other data is *real*.

Plain and simple: if it's not a material impact to your company, don't report it.

6️⃣ Previous month product updates

↳ Features shipped
↳ Customer feedback
↳ Usage/adoption

Showcasing how customers interact with new features illustrates you're in-touch with your users, and focused on building something people will actually use.

7️⃣ Current 30-day roadmap

↳ Upcoming feature releases
↳ Key milestones (raising, deals closing, new hires)

Clearly state where you're going, and why: investors should know if something important is happening later this month.

8️⃣ Lessons learned

↳ Important takeaways/Reflection

Did you make a mistake? Lose customers? Ship a feature people didn't like? Miss targets? Find a new competitor?

If you didn't learn at least *something* in the last month, you're not paying attention.

On adding a reflection section:

Investors want founders who are teachable, actively seeking to get better, and paying attention to their company from all angles (not just the good ones).

Openly share feedback to reinforce you're a founder who will learn from reality & adapt.

9️⃣ Asks

↳ Intros (investors/VCs, customers, agencies)
↳ Feedback (product, team, mission)

Ask for help when you need it (or even before you need it).

While asks aren't required, ensure you're not too shy to speak up when you need something.

Closed mouths don't get fed!

TL;DR:

1️⃣ Intro
2️⃣ Onboarding, Usage, Customer Traction
3️⃣ Revenue
4️⃣ Expenses/burn
5️⃣ Other traction
6️⃣ Previous month product updates
7️⃣ Current 30-day roadmap
8️⃣ Lessons learned
9️⃣ Asks

Communication with investors is important, but not rocket science.

Consistent, clear updates allow you to reflect on your company—just as your investors are.

If you found this thread helpful, consider retweet the first tweet:

https://twitter.com/heyecs/status/1653109034340474880