Raising money is only the first step. Once the funds are in, keeping your investors in the loop is just as important. Regular reporting builds trust, shows traction, and helps turn investors into partners who can actually help you grow. If you’re wondering what European VCs expect in monthly and quarterly updates, this guide will make it simple.
Why Investor Reporting Actually Matters
Think of reporting as relationship maintenance. It’s not just bureaucracy it’s how you:
- Show that your startup is on track
- Highlight wins (and be honest about challenges)
- Keep investors engaged for follow-on funding
- Build credibility for your next round
A clear, consistent report can make investors feel like they’re part of the journey, not just writing a check.
Monthly Reports: Keep It Short and Focused
Monthly updates should be quick, visual, and actionable. Here’s what European VCs typically want:
1. Financial Snapshot
- Revenue (MRR for SaaS or sales revenue for other models)
- Burn rate and runway
- Gross margin
2. Key Performance Indicators (KPIs)
- Customer acquisition and churn
- Conversion rates or engagement metrics
- Product-specific metrics (app usage, subscriptions, etc.)
3. Operational Updates
- New hires or team changes
- Product launches or updates
- New partnerships or pilot deals
Pro tip: Keep it to 1–2 pages with visuals. Platforms like Baremetrics or ChartMogul can automate KPI tracking and dashboards.
Quarterly Reports: Show the Big Picture
Quarterly reports are where you go deeper. Investors want to see progress against your strategy, not just monthly numbers. Include:
1. Financials
- Profit & loss statement
- Cash flow overview
- Balance sheet (if relevant)
2. Strategic Updates
- Customer and market traction
- Product roadmap progress
- Regulatory, compliance, or technical milestones
3. Insights and Analysis
- Compare performance to previous quarters
- Update forecasts and projections
- Discuss risks and how you’re mitigating them
Tip: Charts and graphs are your friends European VCs love visual data that tells a story at a glance. Tools like Carta or Fathom can help make your reports professional without spending hours in Excel.
Sector-Specific Metrics Matter
Different sectors need different KPIs:
- FinTech: Transaction volume, payment success rates, and retention
- HealthTech: Clinical trial progress, regulatory approvals, and patient acquisition
- Deep Tech: R&D milestones, patents, and product validation
Tailoring your metrics shows you understand the value drivers in your sector, which investors notice immediately.
Best Practices to Make Reporting Easy
- Be consistent: Send reports at the same cadence every month and quarter.
- Be transparent: Share both successes and challenges VCs value honesty.
- Focus on insights, not just numbers: Explain what the metrics mean and what actions you’re taking.
- Keep it concise: Busy investors prefer summaries with clear visuals.
Final Thoughts
European VCs aren’t just looking for numbers they want to see progress, understand challenges, and feel confident in your execution. A well-structured monthly and quarterly reporting process helps you stay organized, build credibility, and strengthen relationships with investors setting the stage for future rounds and long-term support. Remember: Reports aren’t paperwork they’re an opportunity to tell the story of your startup’s growth. Make them clear, honest, and actionable, and your investors will thank you.
