How do you respond to an investor email?
Just say thank you. Here's what I wrote back to the investor: Thank you for letting me know. I must admit, I am disappointed because you are one of the "good guys" in the VC world.
Explain Why You're A Good Fit For The Investor
Before you send your email, do some research on the investor and their firm (if they're a venture capitalist), and look to identify: Recent investments they've made. Any requirements they advertise (such as tech-only or sustainable ventures) Typical funding amounts.
- Do not panic. Your first reaction might be to panic but you must keep calm. ...
- Do not make things up. You are going to feel the need to answer every question and have the perfect answer every time. ...
- Do ask questions. ...
- Do provide relevant information. ...
- Do admit what you I know.
- When you should email investors. ...
- What you shouldn't email investors. ...
- Do your research. ...
- Use a compelling subject line. ...
- Start with a concise introduction. ...
- Highlight the problem your startup solves. ...
- Explain how your startup provides value. ...
- List your startup's credentials.
Letters to investors should be personally signed, or stamped with a signature. A letter to investors should always be informative, as well as professional. In order to keep investor relations strong, always communicate clearly and honestly about the details of your business.
- Try the “soft sell” via networking. ...
- Show results first. ...
- Ask for advice. ...
- Have co-founders. ...
- Pitch a return on investment. ...
- Find an investor that is also a partner, not just a check. ...
- Join a startup accelerator. ...
- Follow through.
- Why is now the right time to start the company? ...
- What trends do you see in the market? ...
- Why is the team uniquely capable of executing the plan? ...
- Why do users care about your product? ...
- How did you come up with your business idea? ...
- Which competitor is doing the best job and why?
- Address the sender. Begin your email with a greeting, such as "Dear," followed by the name the sender signed the email with. ...
- Thank the sender. ...
- Show interest. ...
- Request more information. ...
- Create a subject line. ...
- Include a signature. ...
- Proofread your email.
Know the hierarchy of intros.
They make the intro with an endorsem*nt. They make the intro. They give you the contact's email or phone to reach out directly and say you can use their name. They tell you they will forward your email to their contact to ask for permission to introduce you, and actually forward your email.
How to Reply to an Email - YouTube
What is an investor letter?
A letter signed by an investor acknowledging the risks associated with the securities being purchased and usually containing certain representations of the investor as to the investor's net worth, sophistication and access to information.
- Do your homework. ...
- Follow a strategic planning process. ...
- Develop a business plan and financial model. ...
- Draft a set of key milestones. ...
- Create a story that encapsulates the problem your company solves. ...
- Create an investor presentation and pitch deck.
- Ownership buy-outs: You purchase the shares back from your investor depending on the equity they own and the business valuation.
- A repayment schedule: This is perfectly suited to business loans or a temporary investment agreement with an assumption of repayment.
- An industry they are familiar with.
- A management team they believe in.
- An idea with a large market and a competitive advantage.
- A company with momentum or traction.
- An idea that will generate cash flow.
- You Need to Sign This NDA. ...
- We Have No Competition. ...
- We Don't Really Know Our Unique Selling Proposition Yet. ...
- We Have No Weaknesses. ...
- This is Such a Sure Thing it Can't Fail. ...
- I Don't Have an Exit Strategy Yet. ...
- We Really Need the Money.
If your company is early stage and has a valuation under $1M, don't ask for a $5M investment. The investor would be buying your company five times over, and he doesn't want it. If your valuation is around $1M, you can validly ask for $200K–$300K, and offer 20–30% of your company in exchange. Type of investor.
In the business plan, they're going to want to see things such as financial projections, detailed marketing plans, and specifics about your market. Remember, investors are investing more money in fewer deals. If you want to capture a portion of that money, you need to have a rock-solid business plan.
Subject lines such as “Unique Investment Opportunity,” “Please Invest in our company,” and “Great Investment Opportunity” don't catch investors' attention and turn them off. Where XYZ company is a company that the investor has funded and which is in your general space.
I hope you've had a wonderful week. I understand that this task is for an important client, and it seems like an interesting one. I also appreciate you considering me the best person to take up the job. Unfortunately, I have two other urgent deadlines this week, each for equally important clients.
- Respond as soon as possible. Reply to a thank you email within 24 hours of getting it if possible. ...
- Start with an acknowledgment. ...
- Describe how you benefited from the situation. ...
- Keep it short. ...
- Use a personable and professional tone.
When should you respond to an email?
Long Answer: I recommend at least within 24 hours (during business hours, of course) if at all possible. If you cannot respond quickly, send a note saying you will respond when you can do so in detail.
You might start with “Thank you for your patience and cooperation” or “Thank you for your consideration” and then follow up with, “If you have any questions or concerns, don't hesitate to let me know” and “I look forward to hearing from you”.
- Thank you so much.
- Thank you very much.
- Thanks a million.
- I appreciate your guidance.
- I sincerely appreciate ….
- My sincere appreciation/gratitude/thanks.
- My thanks and appreciation.
- Please accept my deepest thanks.
Acknowledge promptly that you received a message. If no particular response is required, just say "thanks." If you own an "action item" but can't get to it for a while, let the sender know you saw the message and estimate when you expect to reply.
Just say thank you. Here's what I wrote back to the investor: Thank you for letting me know. I must admit, I am disappointed because you are one of the "good guys" in the VC world.
- Capture them with Email Subject Line. A robust email subject line can set you apart to stand out amidst multiple unsolicited cold emails and ask for investment. ...
- Integrate a Value Proposition. ...
- Build Brand Value for them. ...
- Strategize 'The Ask' and Finish with a CTA.
Try sending a message via InMail or through mutual connections. Many investors are particular who they add as connections and so, if you directly try adding them, they might “ignore” your request. See if the VC is part of any group that indicates a mutual interest area and use that group to reach out to him/her.
So the gracious thing to do is to send a thank-you note in response to your rejection letter. Send an email or note to the person you dealt with at the company, thanking her for letting you know the results of the hiring process, even though they did not choose you.
- Heal your inner self. It's crucial to get over negative feelings before you make any important decisions regarding your business concept. ...
- Discover why and what. ...
- Take it as a learning experience. ...
- Re-strategize and re-fire.
Cold emails are underrated. In fact, investors are open to cold pitches and many notable startups were funded through a cold email. If done right, cold emails can get you dozens of meetings with VCs.
What is the best way to write a cold email to an investor?
- Keep the email subject under 60 characters. ...
- Don't write "investment opportunity" or "investment idea" in the email subject. ...
- Include one piece of information that shows the VC a thesis fit. ...
- Include one piece of information that show the VC your project is great.
- Do your research. Our first tip for cold calling investors is to do your research. ...
- Show sincere interest. If you demonstrate a genuine interest in your prospects, they're more likely to listen to you in return. ...
- Give space. ...
- Be authentic. ...
- Listen. ...
- Solve problems. ...
- Find commonalities. ...
- Use a script that makes sense.