StartUp Founders: Cold-Email Investors The Proper Way

If you're considering cold emailing potential investors, here are some tips to help you make the most out of your outreach efforts.

Many founders struggle with raising funds, particularly when they lack a network or savings to bootstrap their business. In this scenario, founders often have to rely on cold emails to reach out to potential angel investors. While it may be challenging to secure funding through cold emails, it’s not impossible.

To start, use a CRM to manage conversations. While it’s a one-to-one game, it’s also a volume game, and it’s important to track and measure your progress. Whether you use HubSpot, Airtable, Excel or even Post-It notes, it’s crucial to keep track of responses and maintain a good cadence. As an entrepreneur, it’s essential to execute in a way that allows you to measure and manage your progress.

Next, pay attention to the content of your email. Within the first five words, even though it’s a cold email, show that you’ve done your research. Understand who the investor is, what they’ve invested in, and why they should read your email. This shows that your email isn’t spam and makes it more likely that the investor will continue reading. You can mention where you saw them or their investments, and why you think your company aligns with their interests.

According to Mike Maples, Founder and Partner at Floodgate, “The best cold emails are those that are personalized and relevant. For example, it’s much more effective to say, ‘I saw you invested in X and I think our company Y is also in the same space,’ rather than a generic ‘Can you invest in my company?’”

Focus on the problem statement, not your solution. Talk about the problem that exists in the marketplace and how you believe that the investor can help further size the market. Be sure to provide data that shows that this is a bigger problem than they may realize, and that your company is positioned to address it.

Finally, show how you have done an incredible amount of work to get where you are, and that you are worthy of a response. Show how you have validated and mitigated risks, and demonstrate that you are not just someone with a good idea. You must prove that you are a person who can execute and deliver results.

One example of a company that successfully used cold emails to raise funds is Casper, the online mattress retailer. According to Philip Krim, CEO of Casper, “We sent about 1,200 cold emails to investors before we got any traction, and eventually raised over $55 million. The key was personalization and demonstrating that we understood the investor’s interests and why we believed our company was a good fit for them.”

Related Post

When StartUps Become Empires: Customer Obsession

When StartUps Become Empires: Customer Obsession

Dear Reader, Startup success is measured by adaptability and revenue growth. Empire builders forge their legacy on relentless customer obsession, tracked but not defined by NPS. (tweet this) NPS isn’t the protagonist. It’s a flawed indicator, imperfect but invaluable. It can be gamed, but does serve as a genuine feedback loop. Look past the score, […]

Exceptional Founders Aren’t Firefighters, They’re Architects

There’s a fundamental insight that sets exceptional founders apart from the rest: the ability to be architects, not firefighters. You see, the distinction between being a firefighter and an architect carries profound implications for your startup success. Architects vs. Firefighters: Defining the Mindset Imagine you’re in a situation where your startup faces challenges and obstacles, […]

StartUp Theory vs StartUp Physics: The Catalyst Objective

StartUp Theory vs StartUp Physics: The Catalyst Objective

Dear Reader, For every StartUp Founder, an hour a day on your Catalyst Objective keeps failure at bay. This isn’t StartUp theory; it’s StartUp physics. Don’t be naive. (tweet) Every founder’s got that dream; maybe it’s to change the world, or just to build something epic, but most are stagnating, it happens to everyone. The key […]