startup-costs, investors, finance, angel-investorsThis is a follow up question from my last one. Unlike last time, my question is different this time.
I have been trying to contact investors and angels in Japan (and outside too) for over 2 weeks now, more of them than I can count. So far, not even one of them even responded to me.
How I contact them is rather to the point, and inviting to contact me for more details. But they’re rude enough to not respond at all.
Are there any specific ways to email them?
In the past 3 years I’ve raised over £500k in investment from Venture Capital (VCs) and angel investors in the UK (So this advice may not apply culturally to the way business is done in Japan? if it is at all different).
None of that investment was through cold emails. (Or cold emails alone).
Having spoken to many investors over the years it sounds like they get swamped by emails requesting investment or meetings.
VCs are more likely to reply to cold emails requesting meetings if you have included a deck (10 page power point overview of your business idea - including idea, team, market, what makes you different, sales, forecast, exit) and are clear about what stage of business you are at and you have done your research to understand some of their investment criteria (Most often stated on their website). Many VCs have a quota to fill of businesses that they need to meet each quarter and so may just reply to fill their quota - this is not necessarily a good thing as it wastes your time if you are no where near their criteria.
Some things you can do to up your response rate to emails are things like be specific over who you are talking to - know their name etc.
Be clear about what you want, how much you want, what it will be used for.
Use tricks like checking out their profile on LinkedIn semi-regularly before the email so that your name and face appear in their list of who has been looking at them - familiarity with your name and face are reasons to open an email rather than simply deleting it as many will do.
Keep your AngelList and LinkedIn profile up to date, so they can get as much information as they can. That way if they decide to meet you then you know they are more likely satisfied you meet many of their criteria - you don’t want time wasters and they don’t want their time wasted either.
so that would be my tips on cold emails - however 100% of our investment and I’d say 90% of the investment of the 20+ businesses in our building have come from introductions and networking.
By networking I don’t mean going to specifically set up networking events.I mean going to meet ups and conferences, hack days, collaborations and talks, or social events - talking to people. Having fun rather than the drudgery and social awkwardness of forced networking.
A friend of mine spent months socialising in the bars where investors drank - not needing investment at the time, just setting up relationships for when he did.
At these events tell people what you do and let them know that you are seeking investment.
You need introductions/referals - in the UK some investors do ‘office hours’ where you can book 30 minute slots with them to talk about your business and get advice. This is a good way to set up relationships.
From there you have to get through the initial meetings. Have a pitch or presentation ready and be able to do it with or without a slide deck and then if that meeting is positive you have to go through the process of getting a yes or no from them (No one wants to be first to say yes and no one wants to back out of something that may fly or they can get a good price on).
Once you have one person saying yes then the others are easier, but you still have due dilligence and legals to deal with.
Good luck
It’s quite frequent for investors (or indeed, buyers) to get a bit swamped by incoming requests, resulting in them de-prioritize anything that doesn’t look immediately important.
A few tips on cold outreach:
In the email itself, stay to the point and state the benefit to them upfront. Keep it short - 2-3 short paragraphs max, including the one where you ask for a call or a meeting.
This lack of response is very typical in the investing community, so don’t take it personally.
Your best option is to get an introduction. It doesn’t have to necessarily be warm, but most investors won’t look at an email or pitch deck without one.
Start with your personal network - see if anyone you know can make an introduction. You can try to connect on LinkedIn, and also see if you are connected to any of their connections. Check with your college / university - they often have resources or alumnus that can help. Do some research on Twitter - search hashtags in your space, and get connected with prominent people who can introduce you. Lastly, try to go to events in your space (or relevant startup events) and network. Let people know what you are looking for, as they are generally helpful.
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