As a first-time founder, securing an initial meeting with a venture capitalist can be challenging, especially if you're new to the process.
You may wonder, "How do I reach out to a VC? Can I simply send them an email?"
Here, we see two courses of action:
Case #1: If you're seeking advice on how to request a conversation with an investor, we assume you already have a list of key investors you'd like to connect with.
Before you start sending emails or asking your founder friends for introductions, we strongly (strongly) encourage you to create a fundraising tracking system to manage your interactions with investors.
At the end of this note, you will find templates on how to write cold e-mails to investors.👇
Case #2: If you're still expanding your list of potential investors, you can check Lazo One's Smartlists feature to add new investors to your list, or try one of these four effective strategies for securing a meeting with a VC.
Easier said than done, we know. Since investors are often busy and have packed schedules, they frequently rely on their networks for referrals to potential investment opportunities.
One approach is to reach out to an entrepreneur who is already connected with your target VC. Similarly, you can seek a warm introduction from another VC, angel investor, or startup operator.
Once you have established a connection, you can request an introduction to their investors. This approach not only increases the likelihood of securing a meeting but also adds credibility to your request.
Some investors and founders are very active in their social media or personal newsletters/blogs.
Search for people writing about ventures, fundraising, or pitching and try to interact with them and their publications.
If you do it correctly and consistently, you'll get their attention, and when you send them that private message on LinkedIn, you won't be a complete stranger.
Attending an event, in-person or virtual, is another excellent way to meet a VC.
Most VCs enjoy being helpful, networking, and learning about new companies. Focus on impressing the VC with your business and seeking their guidance. If you make a strong impression, they'll be eager to invest.
If you can't get a warm intro, a cold email is your way to go. Unfortunately, this often prompts the question, "Why couldn’t this founder secure a warm introduction?"
No need to worry, there are instances where networks simply do not overlap, and venture capitalists know this. However, you must nail a short, concise, and personalized email explaining why you are a great fit for a VC.
This brings us to the question: do you know how to write a proper email to a VC?
No intention of spoiling your party, but these things are important. VCs are not seeing you IRL (your charming smile won't help you this time) so how you write and deliver your messages matters.
That's why we've integrated a little help to craft your fundraising e-mails inside Lazo One. As with everything we do, you can try it for free.
Let us show you how it works.
We decided to ask Lazo One AI feature about this. In addition to having all the financial profile of your startup, and the complete database of Crunchbase, Lazo One's AI integration can answer various queries related to fundraising and pitching.
This time we asked: "How can I write an effective cold email to introduce myself to an investor?"
Lazo AI answered:
Writing an effective cold email to introduce yourself to an investor involves clarity, brevity, and precision to capture interest and encourage a response. Here are some key elements to consider when crafting your email:
Subject: Exploring Synergies with [Investor’s Name] – Introduction from [Your Name], CEO at [Company]
Hi [Investor’s Name],
I hope this message finds you well. My name is [Your Name], and I’m the CEO of [Company Name], a company that specializes in [brief description of what your company does, e.g., 'revolutionizing fintech through AI-driven solutions'].
Given your well-documented interest in fintech startups and your impressive track record with companies like [reference any relevant companies they’ve invested in], I believe a partnership could be mutually beneficial. We’ve just achieved [mention a recent milestone, e.g., 'secured 10,000 active users'] and are poised for further growth.
I would love the opportunity to discuss how [Company Name] aligns with your investment criteria. Could we schedule a 20-minute call next week to explore this potential collaboration further?
Thank you for considering this opportunity. I look forward to your feedback.
Best regards,
[Your Full Name]
CEO, [Company Name]
[Your Email]
[Your Phone Number]
You still don't trust the AI, huh?
That's fine, we encourage our customers to verify all answers as Lazo AI is an emerging technology and can make mistakes.
So let's verify this information with Hustle Fund since they know everything about fundraising.
When writing a cold email, you must use a format that respects the investor’s time and quickly conveys the potential value of your venture.
Bullet points! We don't have them in our first example. Let's ask Lazo AI to add them:
"Can you add bullet points to that email example to highlight my value proposition, key achievements, or current projects?"
Lazo AI replied:
Certainly! Incorporating bullet points can make your email more readable and effectively emphasize your key achievements or value propositions. Here’s how you can modify the example to include bullet points:
Subject: Exploring Synergies with [Investor’s Name] – Introduction from [Your Name], CEO at [Company]
Hi [Investor’s Name],
I hope this message finds you well. My name is [Your Name], and I’m the CEO of [Company Name], a company that specializes in [brief description of what your company does, e.g., 'revolutionizing fintech through AI-driven solutions'].
Given your well-documented interest in fintech startups and your impressive track record with companies like [reference any relevant companies they’ve invested in], I believe a partnership could be mutually beneficial. Here are a few highlights from our recent achievements:
- Rapid Growth: Achieved a 300% year-over-year growth rate.
- Strong User Base: Secured 10,000 active users in less than 12 months.
- Innovative Solutions: Launched [describe a recent project, e.g., 'an AI-driven tool that predicts financial trends'].
We are currently working on:
- Project X: [Brief description of the project, e.g., 'Developing a blockchain-based transaction system for secure payments.']
- Expansion Plans: Targeting entry into three new markets in the next quarter.
I would love the opportunity to discuss how [Company Name] aligns with your investment criteria. Could we schedule a 20-minute call next week to explore this potential collaboration further?
Thank you for considering this opportunity. I look forward to your feedback.
Best regards,
[Your Full Name]
CEO, [Company Name]
[Your Email]
[Your Phone Number]
Guess Lazo AI agrees with Hustle Fund.
Using bullet points in your email not only makes the important information stand out but also makes it more skimmable for busy investors who may not have the time to read through dense paragraphs. This format highlights your achievements and current projects clearly and concisely.
Remember, every email and interaction is an opportunity to showcase your vision and drive your startup forward. Use these tips to make each communication count, paving the way for fruitful discussions and, ultimately, the funding needed to grow your business.
