Maximizing Email Engagement: Nurturing Investor Connections for Success
Over the course of a given week, we get many inbound form submissions for our Studio or our early stage investment model. As I’ve written before, here is how to best write that cold outreach to break through the clutter and get noticed. But after that initial outreach, there is sometimes a back and forth via email before a live conversation. Here are some basic tips for how to do that well.
Respond
I would say that anecdotally over half of the time I reply to an outreach asking further questions, I hear nothing back. Be ready to respond. And responding several days/weeks later shows you don’t prioritize the relationship.
Show you are interested
Sometimes when people do reply, it is with short terse responses like “Yes” “See deck” or “Call me to discuss.” These types of responses show little effort and imply they do not value a partnership. Instead, use this as an opportunity to share more about your business and even ask additional questions to the investor to continue the dialogue.
Answer the question
As an example, when asked a question about early customers and their feedback some entrepreneurs just avoid answering and instead write something else. Avoiding the question either shows you are trying to hide something, are not paying attention, or some other negative implication. Instead, answer the question and then elaborate further to clarify. On the flip side, I have seen a simple question turn into a five page novel response … strike the right balance on what matters.
Clarify how the investor can be supportive beyond money
Everyone asks for money; very few also do research and ask for support given the investor’s experience in a market, industry, or from their portfolio. Stand out by showing the investor you see how a partnership is valuable beyond just the money.
Remember that emails back and forth are an opportunity to build the relationship between entrepreneur and investor and evaluate if you are both a good fit for each other. There have been some email exchanges that have an incredibly positive impression and push us closer to wanting to work with the founder, while other exchanges have made it clear we would not be a good fit for each other.
A prompt response shows that you are interested and engaged in the opportunity. Express gratitude: Begin your email by thanking the investor for their interest in your company. This demonstrates appreciation for their time and interest in your startup. Provide additional information: If the investor has asked.
The first rule when faced with an unfamiliar question is to remain calm and composed. Take a moment to gather your thoughts and don't rush into answering hastily. It's okay not to know everything, and investors will respect your honesty and integrity in admitting when you don't have an answer.
Make sure the investors you're meeting with know that you understand what's happening right now in your market. Talk about the trends driving demand for solutions like yours and provide a thoughtful analysis of the competitive landscape.
By providing clear, precise, and transparent information, business owners can maintain their investors' trust and keep them engaged in the organization's growth. Communication can take many forms, such as financial statements, investor presentations, and one-on-one conferences.
Hi [investor first name], I'm [your name], founder of [company name], a [category your product fits into] that [primary product value propositions]. We're a team of [number of employees and expertise], working to help [your target market] solve [target audience pain point].
So they're going to want to know exactly why you need the cash and exactly what you plan to do with it. They'll also want to know when they can expect a return; that should be a part of your business plan. Investors will also be looking for an exit strategy, and you need to think about that in advance.
A simple reply stating "got it," "received it," or "thank you" might relieve my worries. So, yes, I do think it is polite and appropriate to acknowledge receipt of valid emails as soon as possible. Following are a few additional comments.
Second, keep the message short and sweet. Thank them for their investment and let them know how much it means to you. Finally, don't forget to include a call to action. Ask them to stay involved with your startup and let them know how they can help you achieve your goals.
The best way to respond to investor rejection is to remain professional and remain focused on your goals. Acknowledge the decision and thank them for their time and feedback. This will demonstrate your maturity and professionalism, which could potentially lead to future opportunities down the line.
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