Four Email Templates To Help Start Ups Raise Capital

 

#GrowYourLife  #BuildYourBusiness

Life Area: Professional  
Topic: Raising Start Up Capital

Four Email Templates To Help Start Ups Raise Capital

 

Email is still one of the most effective tools for startup fundraising. The question most of my business coaching clients ask center around what and how much to email prospective investors. According to Forbes the series of email templates below make it super easy to leverage email to raise seed money.

 

The Power of Email

Having started numerous businesses, receiving pitches as an investor, and consulting founders on fundraising, I can tell you that email still works. In fact, it can be the most powerful and high ROI tool in your box.

One of my favorite shows continues to be Shark Tank and one of the show’s most prolific investors is billionaire Mark Cuban. What some people don’t know is that Cuban’s investment volume on the show is far exceeded by his Dallas-based investment machine, Mark Cuban Companies.

Consider that multiple entrepreneurs have raised millions of dollars from Mark Cuban alone by using emails like these. In January 2016 a high school dropout received a $3M investment from Cuban as a result of a cold email for his car insurance startup. Adam Lyons ended up closing his Series A round for $17M. He has raised over $21M to date, including investments from billionaire investor Mike Maples Jr. who was also involved in Twitter and Lyft.

In 2015, two engineers cold emailed Cuban and received over $500,000 for their brand new 3D printing startup. Founders Tim Ellis and Jordan Noone went on to raise over $8.4M as a result of that.

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Email is still a favored medium for communicating by savvy and busy angel investors and venture capital executives.

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Email is still a favored medium for communicating by savvy and busy angel investors and venture capital executives, simply because they favor the short form and relative insistence that you get to the point or they bounce. Whether you are just formulating plans for beginning a new venture or are strategizing a new series of funding, these email templates that I found in the book, The Art of Startup Fundraising, can help remove the guesswork and speed you along to the next milestone.

 

Email Template 1

This is the first email startup entrepreneurs should send. It can work both for following up with investor contacts they have been introduced to, as well as for pitching potential investors they haven’t met yet. Note that founders should have spent time building an investor list well in advance of their funding needs. This email is specifically designed to work after you have secured a lead investor, though may be tweaked for earlier stages as well.

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If you are looking for a roadmap to achieve any goal and create the life you want, look no further than my Create The LIFE You Want Workshop. In this workshop, I’ll walk you through the steps needed to create a crystal clear vision of what you want, choosing a BIG, ambitious goal, and putting together a complete plan of action and achievement. This workshop is often held in an exotic location (last year we were in Santorini, Greece. This year we are in Sedona, Arizona!), so if you want a vacation with a purpose, this is the one for YOU!

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Email Template 2

Email 2 is designed to be sent as a follow up to email 1. Two to three weeks is a good time period to wait in between first and second messages. This is essential to keep up momentum with investors you have already spoken to or have communicated back and forth with based on your initial email. It’s also a great way to reach out again in case the first message was missed, and to stay on the radar of potential investors for further rounds, even if they fail to participate in this one.

Email Template 3

If you haven’t closed with all your top investor picks within another two to three weeks, send this email to motivate them to get involved in the round. It is a great final notice to create urgency and get more commitments. Again, it will still be valuable, even if they don’t participate in this round. The more you can stay top-of-mind, without spamming them and becoming annoying, the better.

 

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Be sure to attach your pitch deck in PDF format or a Dropbox link to each email to fortify you and your company in the investor’s mind.

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Email Follow Up Template

If you receive a response to your emails, use this message to follow up fast. If you use a dedicated email account for this task you can even automate this response so you never miss an opportunity or neglect an important investor. Electronic signature tool options include DocuSign, HelloSign, Adobe Sign and PandaDoc.

 

Best Practices for Sending Emails to Investors

Copying and pasting and hitting send on an email is easy. Though there is some art and science to ensuring your messages hit home, are opened, and get the desired results. Here are some quick tips from Entrepreneur magazine:

  • Do your homework and know what interests your prospects, and what does not
  • Be sure you can back up your claims
  • Research effective email subject lines
  • Know which days and times are more likely to result in email opens
  • Understand that inbox clutter can mean a single message is easily lost in the mix

Lastly, consider the best time of day to send your message. Trying to email Mark Cuban in the middle of a Dallas Mavericks game is probably not going to work.

________________________________________________________________________

If you are looking for a roadmap to achieve any goal and create the life you want, look no further than my Create The LIFE You Want Workshop. In this workshop, I’ll walk you through the steps needed to create a crystal clear vision of what you want, choosing a BIG, ambitious goal, and putting together a complete plan of action and achievement. This workshop is often held in an exotic location (last year we were in Santorini, Greece. This year we are in Sedona, Arizona!), so if you want a vacation with a purpose, this is the one for YOU!

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I am a Success Strategist and Master Coach. I provide transformational coaching and training for individuals and organizations to help you Grow Your Life and Build Your Business by getting clear and focused on what you want, why you want it, and how to create it. Learn more about me at SuccessSeriesLLC.com.

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