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How do I share bad news with investors without spooking them?

Tell them early, directly, and with a plan attached, because investors fund founders through bad months but lose faith fast when they get surprised. Hiding a problem until it's a crisis destroys the trust that makes them re-invest. The lowlights section of your update isn't a weakness; it's how you prove you're the kind of founder they can back again.

Go deeper

2 resources, 2 link-checked.

📋 Template
✓ Link checked Free Beginner

A ready-to-use version of the update format YC recommends to its founders. Removes every excuse for not sending a clean, professional monthly update.

Y Combinator Investor Update Template

From Visible.vc by Y Combinator / Visible.vc copy-paste template

  • A simple, proven structure: asks, key metrics, highlights, lowlights, team updates
  • Designed for the monthly cadence seed-stage founders should keep
  • Copy it, fill it in, and ship it in under 30 minutes
Open visible.vc
📄 Article
✓ Link checked Free Beginner

The most practical guide to investor updates, from a company that exists purely to help founders send them. Concrete structure plus real templates you can copy this month.

How to Write the Perfect Investor Update (Tips and Templates)

From Visible.vc by Visible.vc 15 min read

  • Five core parts: summary, KPIs, highlights, lowlights, and specific asks
  • Consistency and cadence matter more than polish; send it every month
  • Make asks specific and easy so investors can actually act on them
Open visible.vc

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