How to properly use the investment you've raised (Use of Funds) and report to investors

Use of Funds is not just a slide in your deck but a promise that the investor will later check against reality. In the experience of fundraising consultants, the slide should answer not only the question “where will the money go,” but also “what specific runway does it provide” and “what measurable milestone will you reach with it” — for example, “the round provides 18 months of runway and lets us reach $50K MRR.” Typical benchmarks by stage: at seed, 60–70% usually goes into product and early distribution, aiming for 18 months of runway; at Series A, the emphasis shifts toward sales and marketing, since the company is no longer proving that the product works but scaling what already works.

Once the money is in, the second part of the commitment begins: regular reporting to investors. The industry standard for the pre-seed/seed stage is monthly updates; at later stages you can switch to quarterly ones. The structure most practitioners repeat: a brief summary, key metrics (cash, runway, burn rate), wins, challenges — honestly, without embellishment — and always a specific “ask,” that is, a request to investors for specific help. This last item is the one most often skipped: according to Visible.vc, only 39% of updates contain an explicit ask, even though it is exactly what turns an update from a formality into a tool that genuinely helps the business. And the main principle: consistency matters more than good timing — you should send an update even in a bad month, because silence destroys trust faster than an honestly described problem.

Sources:

1. Waveup — Use of Funds Slide: How to Build One That Closes Rounds
2. Viktori — Use of Funds Slide: How to Show Investors Where the Money Goes
3. Visible.vc / PrometAI — Investor Update Template