Founders raising capital often underestimate the power of consistent investor communication. A well-crafted investor update can build trust, attract future funding, and strengthen your reputation as a thoughtful, transparent leader. In fact, many founders write a regular update to all of their supporters, including friends, family, and other champions.
This guide explains why regular updates matter, what to include, and how to make them a sustainable habit that can benefit both you and your community.
Why Investor Updates Can Be a Secret Weapon in Fundraising
Only a small percentage of early-stage founders send regular investor updates—but those who do likely gain a real edge. Regular communication keeps you top of mind with potential investors and builds confidence in your leadership.
Investor updates serve multiple purposes:
- Help investors track your progress before they commit capital
- Demonstrate resilience, clarity, and accountability
- Create long-term trust and familiarity
For founders, writing updates also builds discipline. It forces reflection, highlights progress and clarifies next steps—a crucial skill for any CEO navigating uncertainty.
What to Include in a High-Impact Investor Update
There’s no one-size-fits-all format, but the most effective updates typically share three traits: they’re clear, concise, and consistent. Consider using this simple structure:
1. Start with a Quick Refresher
Open with a one-line reminder of what your company does.
Example: “We’re building software that helps independent retailers automate their inventory management.”
Investors meet dozens of founders, so give them an instant cue before diving into your updates.
2. Share Key Highlights and Lessons
Focus on two or three meaningful developments from the past month or quarter.
These could include:
- Product or technology milestones
- Revenue or customer growth
- Key hires or partnerships
- Challenges and lessons learned
Don’t shy away from the hard stuff. Sharing challenges alongside wins can build credibility and show investors how you think and adapt.
3. Add a Forward-Looking Note
Share what you’re working on next—a new experiment, goal, or question you’re exploring. This signals momentum and invites investors to think strategically with you.
4. End with a Specific Ask
If you need something, be clear about what it is.
Instead of “We’d love introductions to investors,” try “We’re looking to connect with early-stage VCs focused on climate tech and supply chain innovation.”
Specificity can turn passive readers into active supporters.
Keep It Simple and Sustainable
Plain text is perfectly fine and sometimes better. It’s personal, quick to produce, and easy to read on any device.
- Use consistent sections every time
- Consider keeping it under 600 words
- Stick to a cadence you can sustain (monthly or quarterly)
Remember: brevity and consistency matter more than polish. An honest 10-minute update beats a perfect draft that never gets sent.
Build and Grow Your Distribution List
Start small. Your first update might go to a few mentors, early investors, or friends. As your network grows:
- Add investors you’ve met or pitched
- Include advisors, founders, or partners who can make introductions
- Mention your newsletter at events and in calls
You never know who might forward your update to someone who can change your company’s trajectory.
Get Started: Lower the Bar for the First One
The hardest update to send is the first one. Send it to one person and just get started. Once you’ve done that, set up a recurring calendar reminder for the next one.
Founders who make investor communication a habit often find unexpected results: new leads, introductions, and opportunities that arise simply because they stayed visible.
Download Your Free Investor Update Template
To make this easier, we created a free investor update template with an example that you can download and customize.
It includes:
- A simple, repeatable structure
- Breakdowns of each section
- An example of a strong investor email
Use it to help create your first update and build a lasting communication habit. Download the template now.
Learn More About Fidelity Private Shares
Fidelity Private Shares helps founders simplify how they manage ownership, equity, and fundraising. Our cap table and equity management platform makes it easy to issue shares, model scenarios, and keep your stakeholders aligned as you grow.
Schedule a demo to see how you can streamline your fundraising and equity management process.
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