Entrepreneurs should always be on the lookout for investors. With Google at your fingertips, finding the contact details of a prospective investor has never been easier. That said, simply reaching out to them is not enough as there are several others like you, seeking their attention.
Follow the tips below, and you’ll soon be on your to snagging and keeping an investor.
1. Hun, are you even ready?
Before reaching out to investors, ascertain if you require external funding as meeting investors too early may undervalue your company.
Also, you would need a business plan to demonstrate the viability and profitability of your business idea.
Remember, investors are no fairy godmothers. They’re putting their money in to get money out.
2. Make a list of who you want to meet
Finding an investor goes beyond them cutting you a cheque. You need to research potential investors, how much money they typically invest in new businesses, the kind of ventures they’ve supported in the past, and the sort of industry knowledge they can provide you.
For instance, if you’re starting an e-commerce company, it’s a good idea to reach out to e-commerce gurus.
3. Engage with them on social media.
This ties into the previous step. Follow the top dogs on Twitter, read and comment on their blogs, watch their speeches for advice. If you know what makes them tick, would inform you on how to approach them.
Here’s a tip within in tip: In your email to them, reference a remark they made that gave you an aha moment. They’ll appreciate it, and you’d have gotten edge over your competitors.
#Motherland Mogul Tip: Refrain from sending invitations on Facebook or LinkedIn, because people tend to swerve on the randoms.
4. If you have connections, use them!
As competition is stiff, use every tools at your disposal. If someone in your circle, knows someone who knows an investor, tell them to ask their friend for an email introduction on our behalf.
Email introductions increase your chances of getting a response. But first, be sure to send your pitch to your friend to ensure your message doesn’t get lost in translation.
1. Identify yourself
Start by telling them who you are, what you do, and how you found out about them. If you were connected through a mutual acquaintance, mention it.
And remember: use the tip within the tip mentioned above to separate you from the pack.
2. Get straight to the point.
Mention the name of your business, it’s aims and objectives. Then summarize your business plan and the stage of your startup.
At this point, an investor will decide if your idea is worth pursuing or not, so be sure to be as clear and interesting as possible.
3. Provide additional info
Include a link to your business website or attach a pitch deck or essay that elaborates the service or product your business provides.
Also, state how your company is solving a teething problem and what sets it apart from its competitors.
4. Why them?
Investors want to know why they’re a good match for you and your business.
Consider what your business requires to reach the next growth phase, and use it to sell your point.
Also, peruse the prep steps above for help.
And of course, we’re not done…
5. Get the ball rolling
Round up your email by mentioning you’d love to discuss in person, and provide three suitable dates. Also if you have product samples, offer to show them at the meeting.
6. Pique their curiosity a little
Finally, if you’ve already met or are meeting a influential person, mention it! This would give you more credibility and make them pay attention to you.
But be slick about it because name-dropping is oh tacky.
Have you used any of these tips to reach out to investors? Did they help? Have you used others that have been helpful?