How to write a great investor update (new template)

You may not want to hear this, but most founders will have to start fundraising just a year after their prior round closed. And that fundraise isn’t free—between legal fees and your time, a Series A can cost you $38k according to Pilot data.

Want to speed that round up, and cut the cost? Just keep everyone updated on your progress. It's free mindshare, and your investors want to hear from you. They are eager for news they can pass along to their limited partners; it makes them both look good. And if they didn’t invest, you’re building up their ‘fear of missing out’ so when you go back to them, they’re more eager to talk.

Those investor update letters can be simple—borrow the template below. Don't let perfect be the enemy of good here. What maters is that you start.

The strategy: Do it tired

Lots of founders start off their year sending long, cheerful update emails. Then the dopamine of the new round wears off and they get busy. They trail off, and only share the news when it’s really good. Or truly dire. That doesn’t let investors and partners in on the journey. It doesn’t create a story they can connect with, and it doesn’t tell them how they can help. It’s like only reading the first and last chapter of a novel. You’re withholding all the helpful emotional highs and lows. 

Some founders will complain that investors always say they’ll “run through walls” and then never make the introductions they promised. But you have to focus on the parts you can control and most founders don’t make consistent, actionable requests.

Think of this investor update as your request machine. 

You will get tired, and this may seem like an annoying chore. But do it no matter what—even if tired. That consistency alone can say a lot about your character.

Of course, your investors are busy too. (Hard to believe, but true.) So it’s important to write this update letter in a consistent, clear manner that front-loads what’s important so it’s easy to skim and follow. That’s part of what our template, which we detail below, offers—a proven structure.

Take it, adapt it, and yet don't forget the good writing basics:

• Front-load what matters most: Assume most people won’t scroll.
• Edit for concision: Write it, then return the next day fresh and ask, “How can this be shorter?”
• Provide context: Don’t assume they know your business. Define uncommon terms.

The investor update letter template

There are five sections. It starts with what’s most important, shows them how everyone else seems to be helping you, buries the valuable customer wins later on (so they have to scroll), and ends with a list of specific asks.