Startup Email Pitch Tips That Will Make VC to Open Your Email
- Business
- June 15, 2022
Are you someone who is finding it difficult to reach VC via email or calls? As you have started your business.
Now that your product is worth billions and you are looking to expand and looking for the VCs, Investment Agencies to see the vision you are foreseeing and get investment from them but are you stuck on how to go about it and get their attention?
Its already a big ask for technical people who are great at building the products but lack the sales skills or marketing skills to win over a busy VC Firms to hear about what your startup is and how it can solve the problems?
Fear not, You have already done which most people are afraid to do so. Now that you are thinking about the Funding I am sure you have a product or services that you are brag worthy and money making for investors to invest in.
I am gonna show you the step by step approach of the perfect cold email to increase your chances of receiving a response back from a VC.
I’ll try to give you a few examples to understand it in better way and how they perform and also share free templates for you to take inspiration from.
Things Which Should be Included in Investor Cold Email Pitch
Important thing to notice is that Investors/VCs understand your product or service offering and what you are asking for in order to evaluate your business to see if its investment worthy.
According to a study done by Harvard Business Review, the very first thing a VC does is connecting with startups that are looking for funding which is also known as “generating deal flow.” Just like you are looking to connect to them and without proper knowledge, guidance and network you will be stuck and wouldn’t know how to go about it whereas someone else with knowledge and network might be able to connect with VCs quickly and get the deal.
VCs don’t have time to go through all the pitches that come to their desk. So the clear your preposition is to understand, the better your chances of them opening your email and responding.
I generally follow the KISS method and if you are old like me as they say Keep it Simple, Stupid.
Let’s start with the steps mentioned below which can also be used as a checklist to steer clear of running into a worse email to lose your chance.
1. A subject line no longer than 6 words (or under 45 characters)
If you are able to explain about your product or services in less than 6 words it means it is easier to understand and connect with your product from users perspective and investors also.
Stay away from subject lines that every newbie in the business sends to get attention. (Ready to change the [blank] industry? Get in Early!) as those are easily bound to be moved to trash bin without anyone opening it.
Instead Use the name of your product or services and the details of your pitch’s asking value.
Examples:
- Unique pet health subscription platform seeking $100k
- Like Uber for Guides: $40 Ask
- [Product name & one word brief]’s Raising $500k for Expansion
Its always the best practice to greet the other person who is opening your email with something that is going to make them feel special and feel that you care.
2. K.I.S.S method to introduce yourself and product in a sentence
REAL life and REEL life is indeed different compared to what you see on Dragon’s Den or Shark Tank where you showcase how dedicated and determined you are for the startup and how your hardwork will take it to next level. VC’s dont have time to read through long paragraphs to just end up knowing you are a hard working person instead of what your product is all about.
If you are someone who studied from Elite Schools or have a background of working with Fortune 500 use that in the introduction and be different from the millions of emails VC’s receive on daily basis. Make it worth their while.
Examples:
- I’m from MindInventory, the top 5 Indian design agencies who are making the world know Indians is more than just developer.
- As one of the co-founders of Passio, a business thats is leading Edge AI platform that emphasise on AI-driven sales and UX experiences. …
- Our app makes it easy for elderly people to stay organised with their fitness regime.
Now that you have established who you are and what your business does, it should pique their interest to know more about your business.
It is essential that you stay on the course and be clear about what you want to achieve out of this email and what information does a VC need to know, “This could be your elevator pitch moment where in instead of being in an elevator with a VC you are in their email box. You should only provide the key points.” Its like you are playing a poker and there’s no need to show all your cards at once. Give them the teaser, ensuring that it is just a brief about the product and how it solves the problem so that they understand what you are sending isn’t the complete business idea.
3. Problem solving
So write a few short sentences about why your brand even exists and do not forget the K.I.S.S Method ; no more than 2–3 sentences max. This could help you with a small description about your business to post on social media sites too.
The better you are at communicating what your brand does and what problems it solves, the easier it will be to sell your pitch.
Examples:
- Like what Ramp says : Your finance software should work for you, but let’s face it—it hasn’t evolved in decades. We help you solve that.
- Like what Duolingo says : Teaching a language to large populations in a cheap and self-sustaining way was pretty much impossible.
- Like what StockX says : Collectors of rare shoes had nowhere to buy and sell.
Some VCs will like and be interested in your brand and some might not. What really matters in the end is that you show them the numbers your business is running with which will make them interested in whether to invest in your business for good returns or not.
4. Data doesn’t lie (with concrete numbers)
Similar to a great back story and your resumes, adding certain data points and numbers will let others know about your business In’N’Out. It also helps if VCs to understand if your business is on the rise or still need more time to be profitable in near future.
Highlight couple of main points for investors to see your current and future potential.
Have you just started the business and Lacking solid financials or crunch numbers and DAU, MAU etc fret not, add a few key figures about your target audience, like spending habits of those in your market.
Examples:
- Our company has grossed $500.000 Year to Date (YTD) will forecast $1.390.000 for the next year, $2.780.000 for the following and $4.753.800 for the third one. From three founders to over 200 employees…
- Only 40% of startups are able to become profitable in 5 years and we have achieve this in under 15 months.
Now comes the part that you have been waiting for.
5. Define your ask
Sometimes its good to be direct and be on the point when it comes about matters related to money when you are asking or giving. Its exactly what you want from your Investors to be clear about what they want in exchange for the investment. Time is money so don’t waste time.
You have to understand and define if you’re emailing a VC for advice, for capital, or for a recommendation to someone else in their network.
Answer this to yourself : If VC’s assistant reads your email and reply could they reply in one line or a small sentence? If yes, you are on the right path.
Its important that someone who is in below ranks are able to understand and read what you are asking for so they can filter it out and pass it on to the higher ranks, it gives you more chances to get an approval from VC instead of being thrown directly to junk or delete box without being opened by a gatekeeper.
Examples:
- I’d love your guidance and feedback about how we should scale for profitability in the market.
- We’re looking for $30k to meet our $100,000 yearly goal.
- I’ll be happy to connect to discuss further and get your expert opinion.
Before you click send, don’t forget to add your contact information that is clearly visible and make sure you are reachable using those details.
6. Close with a signature and your contact info
We all have faced the issue of listening to the song, loving it and still not able to figure out the name of the singer or the song just because there was no information mentioned there. Same goes with your remarkable email pitch and attention grabbing headlines but not providing contact details for investors to connect to you and speak in detail.
A great email signature should include:
- Your first and last name and title
- Phone number
- Calendly link to schedule a call
- Company address
- Website address
- Work-related social media links (i.e., your LinkedIn page)
Here’s something like your handwriting and first impression. If you fail to impress and provide enough information your chance to stand apart fails. And if you pass the test of marketing yourself, you’re a step ahead of most cold emailers.
7. Lastly but not least strong CTA
When you have done all the hard work and put the ball in the other court its the time now for VC to think about your business preposition, funding & ROI timelines etc so do not give them any more work so that they can pass the ball onto your court.
