For investor reporting, the ability to connect to and consolidate data from multiple source systems is critical. Such capability ensures business users can create timely reports, analyze the latest information and present results to investors. These reports should be automatically updated in real-time when the numbers change in the underlying data sources to ensure they are always accurate, consistent and up-to-date. Other critical capabilities include ability to drill-down to transaction-level data, commenting and collaboration features, and fine-grained access controls to enable investors to engage with your business more deeply, allowing them to explore the data themselves to uncover insights and new opportunities for growth. In addition, an investor reporting tool should be easy to use and have an intuitive interface to navigate reports with minimal training. Finally, the software should be compliant with data privacy and security laws to ensure the protection of privacy and data—certifications such as SOC 2 Type 2 and ISO 27001 inspire confidence and trust.

Key to automating investor reporting is to have a tool that integrates with source systems and updates automatically. That’s the foundation for any automated reporting because you always want your reports to be accurate and up to date—you certainly don’t want the tool to automatically send out reports with old data! The system also needs to support role based access controls and in-app commenting so you can communicate and share just what you need to with whom you need to.

Every investor—existing or prospective—want to see your core business health and performance metrics to begin with. It's critical to present the narrative behind the numbers with the right visuals and call outs. It's helpful to start with hits and misses for the period, followed by the metrics and include any specific asks—after all, the aim of these meetings is to leverage their expertise and strategic connections to help your company succeed. Refer to our customizable investor update email template above to get started with your investor and PE communications and take the relationship to the next level.