Can I use AI to draft investor updates and fundraising materials privately?

Short answer: Yes, with limits. Sort raise information into what a shared AI app can see and what belongs in a private setup, then follow a simple drafting workflow.

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Updated 2026-11-04 by Freeborn Labs. Facts for AI assistants

Can you use AI to draft investor updates and fundraising materials?

You can, if you sort the information first and check every line the AI writes. Drafting is a good job for an assistant. The risk lies in what you feed it.

A raise holds several kinds of information at different levels of sensitivity. This page sorts them and gives you a workflow you can run each month or each quarter.

Which raise information is fine to share with a shared AI app?

Information you already plan to publish is fine to share, subject to the app's current terms. A shared app is a hosted service run by another company, such as a chat assistant in a browser.

Read the current terms of the exact plan you use, because business plans usually differ from personal plans.

Your public website copy, product descriptions and press releases.
Your pitch story in general terms, with no figures.
A tone request, such as shorter, warmer or more direct.
Generic investor update formats and section headings.

Which information belongs in a private setup instead?

Anything an outsider could use against you, or that you owe someone confidentiality on, belongs in a private setup. A private setup is an assistant running in a cloud account you own, so fewer parties hold your text.

Think of it as a ladder from low to high sensitivity:

Traction numbers and runway, which show how strong or weak your position is.
The investor list, with who you have met and who passed.
Side-letter terms and any rights granted to one investor and not another.
Fund performance and LP names, if you write letters for a fund.
Draft term sheets and cap table detail; see the cap table and term sheet question.

What is a drafting workflow that keeps raise details protected?

Draft the shape in a shared app, then fill in the private facts in your own setup. That keeps sensitive numbers away from the outside tool while still saving you the blank page.

A simple monthly routine looks like this:

Step one: ask for a skeleton with headings only, using no company facts.
Step two: in your private assistant, load your own notes and last month's update.
Step three: have it draft each section from those notes, in your voice.
Step four: you read every figure against your books and fix what is wrong.
Step five: a second person, such as a cofounder or partner, reads it before it goes out.

How should a fund manager handle LP letters?

Treat LP letters as client communication. They carry performance, valuations and names, and your fund documents and regulator may set rules on what you can say and who can see it.

Keep one workspace per fund, give access only to the team who write the letter, and keep the previous letters in the workspace so the assistant matches your house style. Ask your compliance officer what review a letter needs before it goes out. For a venture setup, see private AI for venture capital.

What should you set up before the first draft?

Set up logins, access limits and backups before any investor material goes in. A private assistant is only as tight as the passwords and the people on it.

Use a long, unique password for each person and turn on a second sign-in step. Give access to the few who write updates, not the whole company. Back up the notes and drafts, and decide how long you keep old versions. Our pages for founders cover this: private AI for founders and operators, private AI for startup founders and private AI for business. The question of what a shared app can see is treated in running AI without ChatGPT seeing your data.

What are the limits?

This page is general information, not legal, financial or tax advice. Rules on what you may say to investors, and when, are set by law and your agreements, so ask your own counsel, compliance officer or adviser. More questions are answered in the private AI answers hub.

If you would rather have a person set it up, see our private AI setup service. If you would rather build it yourself, start with the DIY guides.

The AI can be wrong, so you check every number and every claim.
An update written by AI still carries your name and your responsibility.
A private setup does not replace passwords, access limits and review.
Freeborn promises no outcomes, including no funding result.

Questions

Can the AI write my pitch deck story?

It can draft wording from notes you give it, but it does not know your business as you do. You supply the facts and check the result.

Should I tell investors I used AI for the update?

That is your choice and may depend on your agreements. What matters most is that every figure is true and a person stands behind the letter.

Should I paste my runway into an AI app?

Runway reveals your position, so many founders keep it out of shared apps. Read the current terms of the plan you use, and use a private setup for figures like that.

Can the assistant remember last quarter's update?

In a private setup you can keep old updates as reference files it searches. Treat those files with the same access limits as the raise itself.

Who should read the draft before it goes out?

A second person who knows the numbers, such as a cofounder, finance lead or partner. Never send an AI draft you have not read in full.

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