Investor updates aren’t for your investors. They are for you.

In this article, we’re going to go over the single most underutilized fundraising marketing tool available to founders: Investor Updates.

Whether you’re a first-time founder gearing up for your Pre-Seed, or a serial founder raising a Series B, what you’re about to read will change the way you think about raising capital.

The Biggest Misconception About Investor Updates

For such a simple term, there are a lot of misconceptions about Investor Updates.

There’s a lot of public advice from VCs and angel investors telling founders they should write regular investor updates. The problem is that founders often interpret this advice as something that exists for the investor’s benefit, not theirs. As a result, they undervalue it or ignore it entirely.

Before going any further, we need to separate two very different things.

Investor Updates vs. Portfolio Reporting Requirements

Portfolio Reporting Requirements (tied to Information Rights) are typically quarterly or annual information packets you send to your existing institutional investors.

If you’ve only raised from non-professional investors, it’s unlikely you’ve been asked for formal reporting. If you’ve raised capital from a VC firm or a sophisticated angel syndicate, you’ve almost certainly received an email toward the end of a quarter or year requesting specific information.

This usually includes:

  • A Profit & Loss statement
  • Cash flow
  • A forecast
  • An updated cap table
  • Your most recent valuation

Responding to an investor’s request for information is not the same thing as proactively writing an investor update. The information contained in one does not typically mirror the other.

An information request is something you are technically required to respond to if the investor has information rights. If you’re unsure whether they do, check your deal documents or ask them directly.

That said, this is not what we mean by investor updates.

What We Mean by Investor Updates

When we say Investor Updates, we’re talking about proactive communication. These are updates you choose to send, typically on a monthly or quarterly basis.

They are not just for existing investors.

The purpose of investor updates is to intentionally build relationships and credibility with both current and prospective investors over time.

Why Investor Updates Are So Effective

Investor updates work exceptionally well for a few reasons:

  • Consistency builds trust

When you send regular updates over months or years, you demonstrate consistency, reliability, and follow-through.

  • Investors learn how you think and operate

Over time, prospective investors get a real sense of how you communicate, how you approach problems, how you lead and how you run your business.

  • People root for what they’re enrolled in

When someone feels included in the journey, they start rooting for you. That doesn’t always mean they invest directly. It might mean:

There are many ways investors can support you beyond writing a check.

  • Almost no one does this well

The large majority of founders do not send regular investor updates. This is one of the lowest-effort ways to stand out and create surface area for opportunity.

Why Don’t More Founders Send Investor Updates?

I’ve spoken with hundreds of VC firms in the US and hundreds of VC-backed founders over the past few years. This topic comes up often.

There are a few consistent reasons founders don’t send updates.

1. Time

Writing a high-quality investor update is not a 20-minute task for most founders. For many, it takes two to three hours from first sentence to hitting “send.”

Most founders already work around the clock. What I’ve seen firsthand is that time itself isn’t the real bottleneck. Prioritization and process are.

Prioritization

If your company is venture-backed (or intends to be), investor updates are a mission-critical function. Think of them as long-tail funnel building for fundraising.
You wouldn’t expect to close a seven-figure enterprise contract after one call. Those deals take months of engagement and rapport-building. Fundraising is no different. It is a sales and marketing process, not a transactional event.

Process

Without a process, every update feels painful. Starting from a blank page each month makes consistency almost impossible. In the next section we’ll outline a simple framework for integrating Investor Updates into your workflow so that it is a lighter lift.

2. Content

The second reason many founders don’t send investor updates is because they simply don’t know what to write.

They sit down at the end of the month, open a blank document, and immediately feel stuck. What’s relevant? What’s worth sharing? How much detail is too much? That uncertainty alone is enough to cause procrastination, and eventually, inaction. It gets pushed off until the weeks turn to months, and then it feels awkward and abrupt to suddenly start writing them again.

This is especially common early on, when progress doesn’t neatly map to revenue or obvious metrics. Without a clear structure, founders assume they need something “big” or “impressive” to say, and if they don’t, they delay the update.

The reality is that investor updates are not about novelty. They are about continuity. Once you have a clear framework and a consistent template, the content problem largely disappears.

We’ve created an easy-to-follow guide that walks through exactly how to send monthly investor updates, including what to include and how to structure them.

[How to Send Monthly Investor Updates When You’re Pre-Revenue]

3. Because Things Aren’t Going Well

Another major reason founders avoid sending investor updates is simple: things aren’t going as planned.

Growth might be slower than expected. A hire didn’t work out. A product bet missed. Churn is higher than you’d like. When progress feels messy, many founders instinctively go quiet.

This is understandable, but it’s also counterproductive.

Investor updates are not meant to be exclusively a highlight reel. They are a mechanism for building trust over time. Silence creates far more concern than a thoughtful explanation of what’s happening and how you’re responding.

This is where tone, honesty, and transparency matter most. You should never lie or mislead investors. At the same time, you are not required to expose every internal detail. What matters is communicating from a position of ownership, learning, and forward momentum.

We cover how to handle missed goals and bad news in detail below. For now, it’s enough to say this: going quiet when things aren’t going well is one of the fastest ways to erode trust. Communicating clearly, even when the news isn’t great, is one of the fastest ways to build it.

The Investor Update Framework

Writing investor updates is not an exercise in creative writing, it’s a trust-building mechanism. Here’s a simple framework for integrating this practice into your operation.

1. Block the Time, and Protect It

Once per month, block three hours on your calendar and make it a repeating event on the same day every month.

This time is sacrosanct:

  • You cannot let it run longer than three hours
  • You cannot skip sending the update

Your team should know this block exists and understand that it is a priority. Investor updates have second-order effects on everyone at the company, and that should be made clear to all.

Consistency matters more than polish. It is better to “ship” an update, knowing it wasn’t perfect, than overthink it and end up missing a month.

2. Capture Ideas Throughout the Month

Do not wait until the end of the month and stare at a blank page.

Use a simple system to capture thoughts, wins, setbacks, metrics, and questions as they happen. This can be:

  • A folder in your Notes app
  • A running Google Doc
  • A private Slack channel with yourself

This way, when it’s time to write your update, the building blocks are there, you just need to clean things up and add your commentary.

3. Follow a Continuous Narrative

Each update should pick up where the last one left off.

What did you say you were going to do last month?
What changed?
What did you learn?
What are you doing next?

AI can be useful here. You can use it to:

  • Summarize last month’s update
  • Extract open threads or commitments
  • Prompt you with questions you should answer this month

4. Use a Template (and Stick to It)

Do not reinvent the wheel. And definitely don’t reinvent it every month.

Use a consistent template so:

  • Readers know where to look for what they care about
  • You reduce cognitive load when writing and save time
  • Progress becomes obvious over time

The purpose of investor updates is about building trust and credibility through a continuous practice of communicating. A template makes life easier.

Note: As your company reaches revenue and scale, updates naturally become more tactical and data-driven. Narrative shifts from being primary to being supportive.

5. Track Engagement with a CRM

Use a CRM or email tool that lets you track open rates and engagement.

This becomes invaluable when you enter fundraising:

  • You’ll know who actually reads your updates
  • You’ll see who is consistently engaged over time (did they open ⅙ updates, or do they open every single one?)
  • You’ll have data on who to prioritize (Which we’ll talk about again later.)

Fundraising is much easier when you already know who’s been paying attention.

Guidance on Tone, Transparency, Missed Goals, and Bad News

Often when founders stop communicating with investors, or never begin at all, it’s because things aren’t going well. Here’s how to think about communicating in all seasons.

Be Honest

It goes without saying, but you should never lie, exaggerate, or mislead potential investors. That is fraud. While rare, it can land you in serious trouble, including with the SEC.

Confidence and Optimism, with Truth

You can be honest about the good and bad, while also being confident and optimistic about your vision and plans.

Your investor updates should position you as:

  • A confident leader, with opinions
  • Someone who makes decisions with conviction and moves forward with assurance that they will figure things out
  • Someone who adjusts course based on new information and learns from setbacks

You do not need to be perfect or have all the answers. You just need to present yourself as someone who will figure out how to overcome challenges.

Transparency Is a Choice. Honesty Is Not

Honesty is simple. You should be truthful 100% of the time.

Transparency is different. It’s the degree of visibility you provide into your company’s inner workings, and it should be considered deliberately.

Some CEOs are radically transparent, even publishing full P&Ls for private companies. There are many reasons why that approach is not right for most founders.

A useful mental model when considering your own updates:

“What am I comfortable sharing that helps an investor understand and trust me and my business, and would not be truly problematic if it ended up in the wrong hands?”

Most founders can be substantially more transparent than they think.

If growth is slower than expected or churn is higher than you’d like, you have to weigh the trade-offs when considering if you want to include that in your updates to prospective investors:

  • Bad news may turn some investors away
  • Candidly discussing challenges may surface the exact person who can help solve them

Bad News Should Never Be Hidden from Existing Investors

You should never hide (relevant) bad news from your current investors.

With prospective investors, the decision is more nuanced. Timing, context, stage, and severity all matter. There is no universal rule, and it’s too complex to address exhaustively here. Your personal judgement will point you in the right direction here.

How Often Should You Send Investor Updates?

If you are pre–Series A, you should send an investor update every single month.

That gives you:

  • 12 touchpoints per year
  • 12 opportunities to build trust and credibility
  • 12 chances to stay top of mind with future investors

If you are past your Series A, it depends. At minimum, you should distribute an investor update each quarter to maintain continuity.

Even if you think you’ve raised your last round of capital, you should continue sending updates to prospective investors to maintain optionality. In the scheme of things, it’s low effort with high potential ROI.

Who Should Receive Your Investor Updates?

Of course, you should always include your current investors. Some founders choose to send a more detailed version to current investors that includes more sensitive information.

Beyond that, your list should include:

  • Investors you’ve met or interacted with who could realistically invest in a future round
  • Investors who may not invest directly but can be helpful through advice, feedback, or connections

The bulk of your list should be qualified prospective investors who are a strong fit for your next round or two. If you haven’t built this list yet, don’t let that stop you from communicating with the investors in your network — but building a target investor list should be a top priority.

If you’re building this list yourself, you can:

How Big Should Your Investor Update List Be?

A healthy investor update list typically ranges from 200 to 500 investors, depending on your stage, sector, and geography.

Your market will dictate how many ideal prospective investors actually exist for your company. If you’re a Pre-Seed AI company, you may have 700 firms who are potential investors. If you’re a Series B MedTech company, it may be 150 or even less.

You may be thinking that 200 to 500 seems like a large number. It is. This is your top-of-funnel.

As you start tracking the open rates of your investor updates, what you’ll notice is that about 55-65% of your emails will be opened regularly.

A small percentage will unsubscribe from your updates, or reply to you notifying you that they are not interested or not focused on your space. This is great — your top-of-funnel is pruning itself.

The point here is that your list should be focused enough that you are emailing qualified, relevant contacts, and broad enough that you have sufficient leads.

Investor Updates as a Compounding Advantage

Investor updates are not about what investors want, not really. They’re about building trust, credibility, and momentum long before you actually need capital.

You don’t need a perfect update. You don’t need incredible metrics. You don’t need to wait until things “look better.” What you need is consistency. Month after month, telling a coherent story about where you are, what you’re learning, and where you’re going.

If you take nothing else from this article, do this: block three hours on your calendar right now, set it to repeat monthly, and send your first update this month. Even if it’s imperfect. Especially if it’s imperfect.

This is one of those habits that quietly compounds, until one day you realize fundraising feels very different than it used to.

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