Module 08 · The investor update~10s dwell · weight 7
Fundraising status
State plainly whether the company is raising, and if so, how much progress has been made against the round.
SaaStr's investor update template calls out fundraising status as a section to include only when it's true and specific.
Include
- Whether actively raising: yes, no, or planning to in X months
- If raising: amount targeted, amount committed, runway this buys
Cut
- This section entirely, in months when there's nothing real to report
- Vague momentum language without a number ('lots of investor interest')
Red flags a reader notices
- Round has been 'closing soon' for four consecutive monthly updates
Pitfalls behind them
- Implying a round is closed before money is actually in the bank
- Using this section to create false urgency for the reader
60-second self-test
- · If I said a number here, can I back it with a term sheet or wired funds?
- · Am I including this section because it's true this month, or out of habit?
Template
Fundraising: [actively raising $X / not raising / planning to raise in X months]. [Committed so far, if any.]
Weak
"We're always open to conversations about the next round if the right investor comes along at the right time."
Strong
"Not actively raising. Current runway of 11 months at today's burn gets us to a Series A conversation in Q3, once ARR crosses $350K."
Nimbus Payroll ties fundraising timing directly to its own runway and metrics, not to hope.
Quick quiz
1. When should the fundraising status section be cut entirely?
- ○ Never, it must appear every month
- ✓ In months when there's nothing real to report
- ○ Only after the round closes
- ○ When burn is low
A section with no real update is worse than no section at all.
2. What's a red flag in this section?
- ○ Stating a specific runway number
- ✓ A round described as 'closing soon' for four months straight
- ○ Saying 'not actively raising'
- ○ Tying fundraising timing to a metric threshold
A round that never actually closes despite repeated 'almost there' language damages credibility.