Follow-up and investor relations
How often should I send investor updates?
Short answer
There is no single rule, but a short update every quarter is a common baseline for private investments, with a quick note in between when something material happens. Many sponsors review their own documents and talk to a securities attorney about reporting. Pick a schedule you can keep, keep each note short, and send extra contact during an active raise or closing.
A steady rhythm beats a perfect one
I don't have a magic number, and I would be wary of anyone who gives you one. What I care about is that your investors never have to wonder how things are going. For most private deals, a short written update each quarter is a common baseline. Add a quick note in between when something material happens.
Many sponsors review their subscription documents, operating agreement or fund documents and talk to a securities attorney about reporting. Beyond that, the right pace is the one you will actually keep. A monthly update you skip twice is worse than a quarterly update that always arrives on time. Tell investors at the start when to expect your updates, then hit that date.
Why length matters more than frequency
Investors are busy people. In one of our monthly webinars I made the point that the people on the other end don't owe you a reply, and some of them get 800 emails a day. I was talking about cold outreach there, but the lesson carries over to updates. Your investor is deciding in a few seconds whether to open what you sent.
In this webinar clip I explain why a long blast gets ignored and how much the length and format of what you send changes the response.
Summary and key takeaways from this video
"Did you write them an essay versus write them a two-line email?."
I also pointed out that the default habit is to blast out a newsletter or performance update and then wonder why it gets little response. So I keep updates short and easy to scan. Here is what I would put in each one:
- The headline result in the first line, good or bad
- What changed since the last update
- What happens next and when you will write again
- Any specific ask, kept to one clear request
When I would write more often
There are times when a quarterly rhythm is too slow. Bad news is the clearest one. Investors should hear it from you quickly and directly, not find out later. Big positive news also deserves its own short note.
An active raise is another. When I am following up with prospective investors, I tell people not to be afraid to send five and even ten emails or text messages. I also use the phone, because people are more likely to answer a call or return a message than to answer an email. My philosophy is polite persistence pays. Each time I reach out, I am more polite than the last time, but also more persistent.
This clip from my fast fundraising talk covers how many follow-ups I send and why I mix email, text and phone.
Summary and key takeaways from this video
The stretch between a commitment and money in the bank is another time to stay in close touch. I follow up at every step and use standard responses that thank investors for completing each one. For example, I thank them for the documents and tell them we are waiting for their funds. Once the funds arrive, I let them know we received them and what comes next.
So my answer is a steady schedule you can keep, short notes, and extra contact whenever there is real news or a deal in motion.
More from my talks
One thing I would add is that steady contact builds momentum over time. When you keep showing up with short, useful updates, people start sending you things more often. Eventually you want them to send you things first, before anybody else. A consistent update habit can help keep you top of mind when a deal or an introduction comes along.
"That adds to momentum, and then people will start sending you things more often, and eventually you want them to send you things first before anybody else."
Facts and figures
- Some investors get around 800 emails a day, so a long update competes with a very full inbox.
- When following up with prospective investors, Richard says not to be afraid to send five to even 10 emails or text messages.
- Richard contrasts a 92-page pitch deck with a compelling one-pager as a big factor in whether investors respond.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Family Office Hot Seat: Real Capital Raising Advice for Founders & Investors | Monthly Webinar, Fast Fundraising - Success In 60 Days. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around investor reporting obligations, offering documents and disclosure of material news. Do not use AI to write your own legal agreements.
Your next steps
- Review your subscription and operating documents for any reporting dates, and consider talking to a securities attorney about them.
- Pick a baseline schedule you can keep, such as quarterly, and tell investors what to expect.
- Write a short template with the headline result first, then what changed and what is next.
- Decide in advance what counts as news worth an extra note, including bad news.
- During a raise or closing, follow up at each step by email, text and phone.
Follow-up questions
Should I send bad news right away?
I would tell investors directly and soon rather than wait for the next scheduled update. Many sponsors also talk to a securities attorney when news could change the picture investors have of the deal.
Is it better to send updates by email or phone?
Email works well for a written record of a regular update. When I need a response during a raise, I add texts and phone calls because people often answer those faster.
How long should an investor update be?
Short. I would rather send a few clear lines with the result and the next step than a long essay or a 92-page deck that nobody reads.
Related questions
- How do I turn existing investors into repeat investors?You turn investors into repeat investors by earning trust on the first deal and keeping everything simple and clear.
- How do capital calls work for LPs?A capital call is a request from the GP asking LPs to send in part of the money they already committed.
- How do I communicate with investors when a deal underperforms?Tell investors early, plainly and in the way they prefer to be reached.
- What should a quarterly investor letter include?A quarterly investor letter should cover results against plan, cash and burn, anything that went wrong, changes to the cap table or debt, and what you will do next quarter.
Work through it with the investor meeting follow-up checklist. See all follow-up and investor relations resources.