Raising capital is just the beginning of a long-term relationship with your investors. Many founders think that once an investor writes the check, they can move on and only reach out when they need more money. But investor relationships work just like any other relationship—if you disappear until you need something, you’re setting yourself up for a cold reception.
Regular updates aren’t just a courtesy; they’re a strategic move. Here’s why keeping your investors in the loop keeps them engaged, supportive, and ready to back you when it matters most.
Investors Hate Surprises—Unless They’re Good Ones
Imagine an investor getting a call out of the blue: "Hey, we’re running out of runway, and we need a bridge round immediately." No updates for months, then suddenly an urgent request. Not a great look.
Investors want to know about potential challenges before they become emergencies. If you keep them informed about hurdles like slow sales cycles, regulatory roadblocks, or unexpected churn, they might be able to offer help—whether that’s making introductions, advising on strategy, or even helping you secure a financial cushion before things get dire.
As Erik Berg puts it, “Investors cannot help you if they don’t know what you need. Investor updates are an opportunity to ask for help, guidance, or connections. It may seem intimidating to expose some of the less than glamorous aspects of the business, but by the time investors find out about issues on their own, it will often be too late for them to help.”
On the flip side, when things are going well, keeping them updated ensures they celebrate your wins with you. Instead of surprising them with a huge announcement they weren’t prepared for, sharing steady progress means they can talk about your company confidently in their circles, potentially attracting new funding or partnerships.
Consistency Builds Trust (And Trust Unlocks More Capital)
Investors don’t just back companies; they back founders they trust. And trust isn’t built overnight—it comes from consistent, open communication.
If you are a founder who sends an update email every quarter, covering key metrics, wins, and challenges, even if the numbers aren’t always glowing, investors see a leader who is transparent, self-aware, and proactive. Compare that to a founder who only shows up when they need something. Who do you think investors will be more willing to reinvest in?
Even if your startup is going through rough patches (which all do at some point), regular updates show that you’re in control and thinking long-term. Investors who trust you will be much more likely to support you through tough times, rather than jumping ship at the first sign of trouble.
Engaged Investors Can Open Doors You Didn’t Even Know Existed
You might be heads down on your product, but your investors are often well-connected across industries. The more they know about your business, the more they can help.
If you’re struggling to break into a new market, your investor, whom you’ve kept updated, could know a distributor who can accelerate your entry. Or maybe you’re hiring for a key role, and they introduce you to the perfect candidate. None of this happens if they don’t know what you need.
As David Waxman, Managing Partner at TenOneTen Ventures, points out, “An investor you’ve kept close is much more likely to be calm and helpful in finding a solution. An investor you’ve left in the cold could easily slide into an adversarial role.” Keeping them engaged doesn’t just maintain goodwill—it keeps them actively looking for ways to support you.
A silent investor is an inactive investor. The more they hear from you, the more they feel like a part of your journey—and the more likely they are to leverage their networks for you.
You Stay Top of Mind for Future Rounds
Fundraising doesn’t just happen when you need money; it’s an ongoing process of relationship-building. When investors get regular updates, they naturally start thinking about when they might reinvest.
Consider two startups: one sends a thoughtful investor update every month, sharing revenue growth, lessons learned, and what’s coming next. Another goes silent for a year and suddenly announces, "We’re raising again!" Who do you think gets a quicker commitment?
When investors feel involved in your journey, they’re more likely to preemptively offer follow-on funding. It’s easier for them to say "yes" when they’ve seen your progress in real-time rather than having to reconstruct the story from scratch.
It Positions You as a Standout Founder—Not Just Another Startup
Oftentimes, many founders don’t send investor updates. Some fear sharing bad news; others just don’t prioritise it. But the founders who do? They get remembered.
Think about it: investors see dozens of companies in their portfolios. The ones they hear from regularly become the ones they naturally think of when opportunities arise.
And here’s the thing—even if your current startup doesn’t work out long-term, the way you handle investor relationships now can shape your future. Investors don’t just back businesses; they back founders. If they see you as transparent, reliable, and thoughtful, they’ll be much more willing to support your next venture. Many second-time founders raise funding faster because they’ve built a reputation investors can trust.
Bonus: It Puts You on the Radar of Potential Investors
Investor updates aren’t just for those who already cut you a check—they’re also for the ones you want in your next round.
Many founders assume that if an investor passes on their startup, that’s the end of the road. But in reality, a “no” today doesn’t mean “no” forever. Investors often track startups over time, watching for traction, resilience, and strong execution. By keeping them in the loop with consistent updates, you’re proving that your business isn’t just surviving—it’s growing.
So don’t just update your current investors—loop in the ones you want to invest in the future. By the time you’re ready for your next round, they won’t just be familiar with your startup; they’ll already be sold on your vision.
Final Thoughts
Investor updates are not just a courtesy—they're a competitive advantage. Founders who keep investors engaged enjoy stronger relationships, better support, and increased access to future funding. Whether you’re scaling your startup or navigating challenges, a well-informed investor is more likely to back you when it matters most.
🔗 Pro Tip: Tools like Pitchwise can help you track investor engagement and ensure your updates get noticed. Ready to keep your investors interested? Start sending those updates with Pitchwise today!
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