Fundraising isn’t just about pitch decks and demos—it’s about ongoing communication. One of the most underused yet powerful tools in the founder’s toolkit is the pre-investment update. While many assume investor updates are only for existing stakeholders, savvy founders understand the power of keeping potential funders informed and engaged even before a check is written. Investor updates that work serve as a strategic way to build relationships, demonstrate progress, and stay top-of-mind for when that investment decision is made.
Why Investor Updates Matter Before the Check Clears
Before investors commit to a deal, they want to see more than just ambition. They want evidence of execution, traction, and consistency. Pre-investment updates give you the chance to show your ability to build, adapt, and lead over time.
The Importance of Staying Top-of-Mind
The fundraising journey rarely ends after a single meeting. Often, investors take weeks—or months—to evaluate a startup. During this time, silence can be costly. Regular updates ensure your startup isn’t forgotten. More importantly, they communicate that you’re someone who follows through. Consistent communication builds familiarity and trust, allowing you to shape how investors perceive your leadership, product development, and company momentum.
Understanding Pre-Investment Communication
When founders think about investor communication, they often focus only on post-investment transparency. But updates play a distinct and valuable role even before a deal is done.
Building Relationships Before the Deal
The mindset around pre-investment updates should be proactive, not transactional. Potential investors are not yet committed, but they are paying attention. By sharing progress updates, you begin to develop a working relationship with them—without formal obligations. It’s a chance to highlight your decision-making process, show how you respond to challenges, and give them a taste of what working with you would be like. Unlike updates for existing investors that often include in-depth financials, pre-investment updates should focus more on signals of growth, execution, and leadership.
Key Elements of Investor Updates That Work
Not all updates are created equal. The best ones provide clarity, insight, and relevance—without overwhelming or underwhelming the reader. Crafting investor updates that work means finding the balance between brevity and substance.
What to Include for Maximum Impact
Start with progress: Investors want to see that you’re gaining traction. Include key performance metrics like revenue growth, user acquisition, or engagement rates. These help quantify momentum and validate your potential. Next, highlight milestones—such as product launches, new partnerships, media coverage, or strategic hires. These achievements show you’re moving forward. It’s also important to provide transparency. Talk briefly about the challenges you’re facing and how you’re tackling them. This signals maturity and builds trust. Finally, include a short forward-looking note about what’s next. This gives investors something to anticipate and encourages them to keep following your journey.
Best Practices for Pre-Investment Updates
A well-structured update does more than convey information—it builds confidence. How you deliver your message is as important as the message itself.
Structuring Updates for Engagement
Consistency is key. Sending updates monthly or every six weeks keeps the conversation alive without becoming spammy. Format matters, too. A clean, scannable email with bullet points or short paragraphs is often more effective than a long, dense message. Use a friendly yet professional tone. Be honest, clear, and humble. If you can, include simple visuals like graphs, product screenshots, or short demo links to make your progress more tangible. The best investor updates tell a story—one that shows growth, learning, and adaptability.
Mistakes to Avoid
Just as the right updates can build trust, poor communication can erode it. Avoiding common pitfalls will help keep your updates credible and engaging.
Common Pitfalls That Hurt Credibility
One major mistake is overhyping your progress. Investors are seasoned professionals—they can spot fluff. Instead of spinning every detail as a victory, be candid about what’s going well and what isn’t. Another issue is inconsistency. Sending updates irregularly or only when you have big news can make you seem unreliable or opportunistic. Lastly, ignoring replies from investors is a missed opportunity. If someone responds with a question or comment, take it as an opening for further engagement. Communication is a two-way street—showing that you’re listening is part of what makes your update effective.
Examples of Investor Updates That Work
Theory is helpful, but examples make it real. A well-crafted investor update doesn’t have to be long—it just has to be thoughtful, clear, and authentic.
A Practical Template to Follow
A successful update might look like this:
Subject: March Update – 25% Growth + New CTO Hired
Hi [Investor Name],
Here’s a quick update on our March progress:
– MRR grew 25%, reaching $23K
– Launched iOS app (4.6 stars from 700+ reviews)
– Hired CTO (ex-Google)
– Started pilot with [enterprise client]
– Challenge: Slight churn increase; we’re improving onboarding flowExcited about April—working on two new features and exploring a strategic partnership.
Best,
[Your Name]
This style is short, informative, and respectful of the reader’s time. It reflects progress, acknowledges challenges, and builds a narrative over time—hallmarks of investor updates that work.
How Updates Influence the Decision to Invest
Regular communication may not guarantee an investment—but it definitely improves your odds. It gives you more chances to make a strong impression and allows investors to watch your story unfold in real time.
Updates as a Strategic Investment in Relationships
Over time, updates help potential funders feel more connected to your company. They see how you handle setbacks, how you celebrate wins, and how you evolve. This visibility reduces uncertainty, which is often the biggest barrier to commitment. In many cases, investors end up funding the startup they’ve been observing the longest—not necessarily the one with the most hype, but the one with the clearest, most consistent execution.
8. Conclusion
Pre-investment communication is more than a courtesy—it’s a strategy. The startups that stand out are the ones that keep investors informed, engaged, and inspired before a deal is ever signed. By crafting investor updates that work, you show potential funders that you’re not just building a product—you’re building something worth believing in. Stay visible. Stay honest. And keep writing the story that investors will one day want to be part of.