How to Write an Email Investors will Actually Read in 10 Steps

Are you struggling to get an introduction with an investor?

Well, what if we told you that to secure a meeting, you don’t necessarily need an introduction. Instead, a well-crafted, succinct and personalised email might just be enough to start a conversation.

It is likely that most of the advice out there on how to procure a meeting with an investor revolves around getting an introduction first. Sure, being introduced to an investor provides you a level of credibility but sometimes founders just don’t have the right connections. What then? One keeps digging, praying and hunting for the one perfect connection? Despite the bad rep cold emailing has taken on, a short, simple, yet enticing email could just be the ticket to raising funds. Take Ilya Sermin for example, CEO of Datanyze, who succeeded in raising $2 million in his seed-round using cold emails, which even caught the eye of his now lead investor, Mark Cuban. Take your cold emailing to the next level with our step-by-step guide, leading you through which content to include, functional structuring and how to make personalised, all to get you and your start-up noticed.

In summary:  

Step #1 Perform a Background Check

Step #2 Personalise the Subject Header

Step #3 Briefly introduce Yourself 

Step #4 Get Personal

Step #5 Prove Yourself (and Your Startup)

Step #6 State what you Need

Step #7 Give a Call To Action (CTA)

Step #8 Attach your Pitch Deck

Step #9 Become an Editing Pro

Step #10 Send a Follow Up Email (twice!)

Step #1 Perform a Background Check

Before we begin to put pen to paper (or, fingers to keyboard, to be more precise), it’s important to understand who you are trying to reach out to and what they like. Sending out emails to investors without doing your homework not only looks subamateur, but could end up being a complete waste of your (and the investor’s) time.

For a start, it is worthwhile trying to understand the types of investments the investor in question is prone to taking on. This way you can see if they would be a good fit with your startup and whether your startup is a good fit for their portfolio. Check out which companies they have previously supported and whether they partake in co-investment. From this, you will be able to see if they invest in a variety of sectors, a range of stages or whether there are any patterns in their investment strategies. Other useful information could include looking for their average ticket size and identifying the average valuation of their portfolio of companies. At Angels Partners we have collated all this information for over 40,000 investors, saving you time and energy and ultimately speeding up your fundraising process. 

Besides all of the technical information, take a look at their social media handles, such as LinkedIn and Twitter, to give you a more personal insight to their preferences, involvements and interests. If your sector is in greentech and you reach out to a fintech investor, your email is headed straight for the trash.

Step #2 Personalise the Subject Header 

The first hurdle to getting a busy investor to read your email is to get them to open the message in the first place. To do this, you are going to need a catchy and to the point subject header, that grabs an investor's attention and makes your startup stand out from the other thousands of weekly email entries.

In general, subject headers of 65 characters are considered the perfect length. In terms of content, generic headers or stating the name of your startup (that, realistically, no one has heard of) is not going to get an investor to click. Instead, list some metrics or key information relevant to what your investor likes. For example, “RAISE: SaaS, 15% MoM on growth, CS Stanford grads, $600k raise” could be a good place to start. 

Step #3 Briefly introduce Yourself 

Ever heard of the phrase less is more? Well, when cold emailing investors (who have very limited free time) introducing yourself and your startup should be kept to two sentences, max! In short, clearly and very briefly state what you do. You are looking to say the absolute minimum to earn their attention.

The opening sentences of a cold email should give the investor just the right amount of information that they have an adequate idea of what your startup does, the type of sector and your business model. With this information, they can quickly filter for interest and continue with reading your pitch, if they deem your startup an appropriate fit. Ultimately, your first task is to incentivise an investor to read on. Provide just enough information that the investor is curious to learn more. To create your own company one liner, head over to our article on giving the perfect pitch here.

Step #4 Get Personal

Investors receive huge numbers of emails from founders everyday. If they see a specific link about them and their previous ventures, this will increase your chances of a response by 100%. Generally, If someone does something nice for us, we naturally feel the need to return the favour. So, use a touch of personalisation, showing you've taken the time and effort to understand their interests and ventures, to increase your response rate. Check out our article on how to get more investor meetings using intel about them here.

Having successfully completed step #1 (background check on your target investor), you will be in the perfect position to state some metrics and information that will show the investor you’re interested in what they have previously accomplished. Generally speaking, you can demonstrate you specifically want their expertise and support by quoting the sector and stage they have previously invested in, their former deals and firms, quotes or information from blog posts and any other (random) information you found in your research. Who knows, maybe you both have the same taste in music or both own a border collie? Ultimately, making someone feel noticed and a little bit of flattery can go a long way. At Angels Partners we have carefully crafted a variety of email templates, to suit your stage and sector, and provide founders with the perfect cold email (see exert in image below).

Step #5 Prove Yourself (and Your Startup)

It is often said that data is king, and it’s king for a reason. If your investor has made it to this stage of the email, now you must cement their curiosity with metrics. Use a range of stats and numbers to demonstrate the strength of your project, the stellar execution of the team and good product/market fit.

In order to create some buzz around your startup, include 2-3 bullet points showcasing the strength of your startup. Examples, depending on your sector and stage, could include:

• Monthly recurring revenues (MRR)
• Month on month (MoM) growth rate
• Repeat order rate
• Number of active users
• Retention rate
• Team credibility and experience
• Customer Reviews
• Market size
• Traction 

For many startups in the early stages, these numbers don’t necessarily exist (yet!). In this scenario very early stage founders could use their business plan and market opportunity to demonstrate buzz. Essentially, use whatever data you have.

Step #6 State what you Need

Having a solid capital deployment plan not only shows progressive and long-term thinking, but it radically cuts to the chase, getting straight to the point. Investors are aware that you’re reaching out to them for funding, so don’t be afraid to say exactly how much you are looking to raise. 

If you are hoping to raise $500k for your seed round - say just that! If you’re wanting to raise $3-3.5m for your series-A round - be frank about it. There’s quite literally no point shying away from the figures, instead, build trust with an investor and start off on the right foot, being honest and clear. On a related side note, always quote your finances in USD, unless you are German or French, when EUR is acceptable. Take a look at our article about figuring out how much to raise here and how much is too much here.

Step #7 Give a Call To Action (CTA)

Now that the investor is pretty much convinced by your modest introduction, impressive metrics and master financial plan, it’s time to send the ball into their court. 

In almost every case, a founder should finish the email with a simple action step. Scheduling a call or video conference is the best option, as it demands less time of the investor than a face-to-face meet up. Other action steps to provide an investor include responding to a question or signing up to your service. Essentially, you need to incentivise the investor to reach out to you, but be vigilant not to come across too aggressively. In some cases, investors, such as Micheal Seibel, prefer to be the first one to ask for a call, so make sure you’ve done your homework from step #1 and know what your target investor likes. Examples include:

• If you feel our vision aligns with your mandate, I would be happy to schedule a call with you this week. Would Thursday work for you? 
• There are more details in the attached pitch deck. I will be in SF next week, are you available on Wednesday?

Ensure you are flexible and at any cost, don’t come across as demanding. A word or warning, when giving a CTA, just make sure you’re not asking for a coffee. Investors get asked enough of this - don't be basic.

Step #8 Attach your Pitch Deck

If your email has been successful in generating interest, the investor is likely going to want to know more. Provide your pitch deck for them to read at their convenience and make sure you state in the email you have attached one, for example, “Kindly find a pitch deck attached”.

Attaching your deck as a PDF is one of the easiest and most hassle free methods for investors to get to learn more about your startup. However, there are alternative methods, such as providing a link for investors to view your deck on platforms like DocSend. At Angles Partners, our automated campaigns use unique tracking links, so that founders can gauge investors’ interest easily, by monitoring clicks, opens and time spent on your deck. The tracking link gives founders the ability to stay in control of their documents (they can shut down a link at any time) and update their pitch in real time, making sure investors always have access to the most recent information.

Step #9 Become an Editing Pro

Now that you have crafted the perfect cold email, it’s time to give it a quick polish. Remember, this email might just be the ticket to raising the capital you need, so make sure it's as masterful as possible, showing you have an eye for detail and pay close attention.

You might be on track to being the next Uber or Google, but if the appearance and layout of your email is a mess, no investor is going to be reading past the first sentence. The ease at which an investor can examine your email will greatly impact your response rate. In fact, most people tend to spend roughly 10 seconds reading an email. So, if your email doesn't fit on one screen and you are having to scroll through, you've definitely written too much. 

Reading large chunks of text is not motivating. Make sure there's more sentences than bulky paragraphs and break up your text with white space. To ensure your recipient reads your email in its entirety, keep it short, with no images, just plain text. Emails with images can be picked up as spam or marketing, so keep it simple. 

Open with their name and close with yours. This may seem obvious but starting an email with, “Hey,” or “Hello,” screams a lack of professionalism and effort and mass spamming. Start with their name, correctly spelled (yes, people spell investors names wrong all the time) and get your relationship off to the best start. Also, avoid being an amateur by starting the email with your name, for example, “Hi Bruce, My name is John.” By closing with your name you don't need to open with it. 

Step #10 Send a Follow Up Email (twice!)

Investors are busy people. They accumulate masses of emails per day and today’s inbox clutter can mean a single message is easily lost in the mix. As a startup you certainly should be active on LinkedIn, so, send them a connection with a brief not stating you reached out to them via email. If they do not respond a week after the initial email was sent, follow up with an update email, for example, “We have closed 40% of the round“. Sending out daily emails, badgering investors is going to get you anywhere but on the invitation list. If they have remained silent two weeks post initial contact, reach out again with a second follow up.

Using follow up emails drastically increases your response rate and at Angels Partners we’ve made this process even more streamlined for you with our follow up templates and automated campaigns for scheduling emails. If after the second follow up you don't hear back, it's probably a good indication that this investor is not interested. Don’t take it personally, refocus your energy and keep searching for the right fit. 

What Not to do

Throughout this article, I hope I have been able to convince you of the necessity to personalise cold emails. With this in mind, it really is a waste of time using bulk outreach processes to contact hoards of investors. Not only will investors immediately notice the lackluster and minimal spamming approach a founder has taken but it's likely your emails will be headed straight to junk anyway.

Since you’re looking to raise money for your startup or company, make sure you’re not using your personal email address. Purchasing a domain name is straightforward and easy and shows an investor that you really do mean business. 

Being personable and likeable is also key. Don’t use formal salutations, such as, ‘Mr. Alex’ or ‘Mr. Jarvis’ as you want to come across on the same level. In business communication, using CAPS is off limits and will not be well received by an investor. Granted, you may be excited and driven by your stats and metrics but avoid using CAPS, unless you want to scare off an investor. 

Another important factor to consider is the time at which you send your email. Sending an email to Mark Cuban in the middle of a Dallas Mavericks game is probably not going to impress. Rather, send your emails on a Tuesday or Thursday and at around 10am. At Angels Partners, founders can use our automated email scheduling service, making this part of the process hassle free.

Closing Remarks: Recap, Tips and Tricks

Copying and pasting and hitting send on an email is easy but it's not going to get you or your startup very far. Fortunately, as I have shown, there is some art and science to ensuring your messages hit home, are opened and get the desired results. So here’s a solid roundup of our top advice to increase your chances of connecting with your target investors:

• Do you homework and understand what interests your prospective investor (we are helping you save a tremendous amount of time with this at Angels Partners)
• Use a short and effective subject line
• Explain in as few words as possible what you do
• Demonstrate that the investor is a good fit for your startup with a touch of personalisation
• Lead with value: what does the investor need to know to grab his attention and why they should care
• Be sure you can back up your claims with stats and/or metrics
• Get to the point and ask for what you need
• Finish the email with a simple CTA
• Attach your pitch deck
• Send emails on the days that are more likely to result in opens (Tuesday through to Thursday) using the automated service on Angels Partners
• Don’t be afraid to follow up... twice (again, we have streamlined this process over on Angels Partners)

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