Do you have trouble getting in touch with VC by phone or email? as you started your enterprise?
Now that your product is valued in the billions, you want to expand, and you’re seeking VCs and investment agencies to see the future you’re imagining and invest in it. But how do you approach them and grab their attention?
For technical professionals who excel at creating the goods but lack the sales or marketing abilities to convince busy VC firms to learn about your start-up and how it can address the problems, it is already a substantial hurdle.
You have already done what most people are frightened to do, so there is no reason to be afraid. The fact that you are considering funding now shows that you have a good product or service that will bring in money from investors.
In order to increase your chances of hearing back from a venture capitalist, we’ll aim to outline a step-by-step process for writing the ideal cold email in this post.
We will try attempt to give you a few examples so you can better grasp them and how they work. We’ll also share several free templates with you so you can get ideas.
Essential Tips that will make VC open your email
A click-worthy subject no longer than 6 words (or under 45 characters)
If you can sum up your product or services in less than six words, both users and investors will find it simpler to comprehend and relate to your offering.
Avoid using the subject lines that every new employee in the industry uses to attract attention.
(Are you willing to alter the [blank] industry? Arrive early!) due to the likelihood that those will be moved to the trash without anyone opening them.
Despite mentioning the brand of your goods or services as well as the specifics of your pitch’s price.
Examples
- Unique pet health subscription platform seeking $100k
- Like uber for guides: $40 Ask
- [Product name & one-word brief]’s Raising $500k for expansion
It’s ideal to always say something to the individual who is opening your email that will make them feel special and cared for.
Kiss method to introduce yourself and your product in a sentence
In comparison to what you see on Dragon’s Den or Shark Tank, where you show how committed and devoted you are to the start-up and how your hard work will take it to the next level, there is a notable difference between Real and Reel life. VCs don’t have time to read through long lines to learn only that you are a dedicated individual rather than what makes your product unique.
Use your excellent education or experience working with Fortune 500 companies in the introduction to set yourself apart from the millions of emails that venture capitalists receive every day. Make it worthwhile for them.
Examples
- I’m from Stellar Digital among the best professional digital marketing agencies letting the world know Indians are more than just developers.
- We provide digital marketing services, web design and development and mobile app development services.
- Our services assist businesses to remain to stay ahead of the competition.
A VC should be interested in learning more about your firm now that you have established who you are and what your company does.
Problem-solving
“Think of your email as an elevator speech”, as VC Sean Park advises. Only include the essential details.
Therefore, briefly describe the purpose of your brand. Do not use more than 2-3 sentences; keep it brief and pleasant.
Selling your pitch will be simpler the better you are at explaining what your brand does and what problem it solves.
Examples
- We help [specific customers] with [a specific problem] so they can [do something]
- The app tracks and predicts the optimal time to clean your fish tank so you get more time between cleanings
- Our new discount platform has already surpassed the savings algorithms created by our biggest competitors, racking up over $2 million bucks for our users!
So, your VC may be interested in your brand, or they may not be. That truly doesn’t matter. They might only be interested in investing for the return once you’ve presented them with the numbers, and that’s still cool.
Data doesn’t lie (with concrete numbers)
Adding specific data points and stats can help others learn more about your firm, much like a compelling back story and your resume. Additionally, it helps if VCs are aware of whether your company is growing or still needs more time to become profitable in the near future.
To help potential investors understand your current and future possibilities, emphasize a few key areas.
If your company is new and you lack reliable financial information or the ability to crunch numbers and calculate DAU, MAU, etc., do not worry; simply include a few critical statistics about your target market, such as information about their spending patterns.
Examples
- We have grown from 10k subscribers to over 1 million.
- From three founders to over 200 employees
- Xyzunlimited has already raised $500,000 through crowdfunding
Define your ask
This is the time to be direct and make sure your VC knows exactly what you need. Don’t waste time here with alluring words because time is money.
You must choose whether you are emailing a VC for their counsel, their funding, or for a recommendation to another investor contact in their network of contacts.
Consider it like this: Could they respond in a single, concise sentence if a VC asked their inbox-watching assistant what your company desired?
That’s crucial because, if you can persuade someone with less experience to forward your email based on a straightforward request, your chances of winning the support of top-tier VCs in the following round also increase.
Examples
- I’d love your feedback and proficiency about how we should scale profitability in the market.
- We are asking for $100k to meet our $500,000 goal.
- I’m happy to connect however you prefer
Before hitting send button, don’t forget to add your contact information.
Close with a signature and contact info
Nothing is worse than trying to contact someone who just sent you an amazing pitch and finding no contact information at the bottom of their email.
An effective email signature should contain
- Your first and last name and title
- Phone numbers (Cell and work)
- Company address
- Website address
- Work-related social media links (such as a link to your LinkedIn page)
This is where you will introduce yourself to your VC, not your brand. Additionally, if you succeed in marketing yourself, you will be one step ahead of the majority of cold emailers.
Last but not least strong CTA
Don’t give the VC any more work until they pass the ball into your court because once you’ve put in all the hard work and moved the ball to the other side, it’s time for them to consider your business model, funding, ROI timescales, etc.
Conclusion
Your ambitions for raising money may have been doomed by Covid-19, but that doesn’t imply your investor outreach attempt is over. The foundation of long-term, mutually beneficial relationships is reaching out to investors.
You must learn how to do it correctly, understand what investors are searching for, and then connect them with precisely that if you want to stand out in a sea of similar emails.
But in order to achieve more successful results, you seek the help of a professional digital marketing company for this work. Our team of seasoned marketers at Stellar Digital can assist you with any project. Learn more about our email marketing services and digital marketing services by visiting stellardigital.in.
