There’s a saying that goes: “The best time to fundraise is when you don’t need it.”
Every experienced founder knows that it’s far easier to raise money when your company is performing well and you want additional capital, rather than when your company is struggling and you need it.
So what are you supposed to do if you’re an early-stage founder that’s working towards your pre-seed or Seed round?
Easy. Start writing investor updates.
Don’t have investors yet? Doesn’t matter.
The purpose of this strategy is to communicate regularly with potential investors and to keep them “warm” with regular company updates.
Here’s what you do:
Take the email address of every person you’ve ever met and put them on an email list
Send them an email explaining why you’re writing to them and what you’re working on
Give them the opportunity to subscribe and follow along on your journey
Then, you should send updates once every 2-4 weeks explaining:
The goals you set in the previous update
The goals you accomplished since the previous update
The goals you’ve set for the next update
At the end of the day, investors want to see that you can repeatedly set and achieve goals. That’s it.
The moment you start writing and sending investor updates is the moment you start your fundraising journey.