ITR #003: Connecting with Investors: Writing Great Outreach Emails

What everyone gets wrong about investor outreach emails - and how to make them better. ✅

Author

Jorian Hoover
November 27, 2024

Welcome back to Into the Ring!

Thank you again for your continued support of Into the Ring. I have had so many insightful conversations with many of you, and I welcome each one. Get in touch if you have any questions or feedback on my letters to date.

❄️This week, my thoughts are turning to warming up investor outreach, which seems apt following my recent icy trip to Slush 2024 in Helsinki, billed as ‘the most founder-focused event on Earth’. Despite some travel snafus with my outbound flight (I was contemplating Nordic ferry schedules for a 3am arrival at one point), the two day event was fascinating. My highlights were the panels on ‘Navigating the Opportunities and Challenges of Investing in AI’, and ‘Exit 101’, a behind-the-scenes look at Depop’s $1.6B acquisition by Etsy - some unmissable insights in both. 🇫🇮

In this week’s letter, I want to share some thoughts on why great investor outreach emails really matter, what many founders get wrong, and my insights into how to make them better. 📩

Setting the Scene for Investor Outreach 🎥

When you’re seeking funding, and particularly if you’re an early-stage founder, your first email to an investor is a crucial one - you don’t need me to tell you that. But somehow, it seems to be the hardest to get right. Too much of your own story, too few of your company achievements, too wordy, too coy…the list goes on. 

To frame your contact, take a moment to think about how and when your investor is likely to receive your message. I can’t stress this enough - investors receive THOUSANDS of outreach emails annually, and they archive or delete the majority of them. Why? Because if the fit/value doesn’t jump out at them from the first few sentences, they have no other choice but to move on. 

Whether you’re reaching out directly to an investor, or to someone who can make a valuable introduction, remember they’re likely to be in transit, scrolling through their messages in the back of an Uber, and in between meetings. 

The window of time to make an impact is short, so make it count.

Outreach Emails Can Be Game Changers…🚀

Having a great outreach email can be a game changer for startups. Founders will connect with hundreds of people as part of a fundraise, including directly to VC/Angel investors they don’t know, to pique their interest and get them to take a call, to friends and family members who may want to invest, or when connecting with a VC/Angel via someone in their network.

A polished outreach email is key to garnering interest in your startup and getting those crucial meetings booked.

…But Most Outreach Sucks 😞

Honestly - most outreach emails are a disaster. I’ve seen the same mistakes countless times, and the worst part is that the sender often has no idea how ineffective their outreach really is. 

Here are a few of the most common outreach sins, in my experience:

  • Too long. If the email is overwhelmingly long, it’s a total turnoff for investors. Brevity is key.

  • Too unfocused: Investors want to know about traction, key differentiation, the fundraising ask, team credentials - all targeted information. Don’t get lost in your own startup story.

  • Lack of personalization: No one wants to read an obviously copied and pasted message that’s been blasted off to a couple hundred people. Even a line or two of personalization can make a big difference.

  • Not suitable for forwarding: If sending a forwardable email, the wrong outreach adds a lot of work for the introducer. You want to make the forward seamless.

  • Leaving out the best parts: Some founders neglect to mention the most exciting parts of their proposition. Does your CEO have an amazing work history? Have hundreds of customers already? Lead with these exciting snippets.

  • No call to action: This one is my personal bugbear. A busy investor needs to know what you’re really asking for. Make it clear you want a call! Being coy gets you nowhere. 

The good news is that these are fixable mistakes, and a short reworking of your outreach copy can warm up even the coldest approach.

Core Blurbs 🗣

Start with nailing a strong core blurb, a short piece of text that describes the founder, the startup, the fundraise, and the most exciting highlights about what you are doing, in 150 words or less. 

It is an insanely useful piece of material, and you should create - and bank - a polished blurb to save crafting a new one each time an opportunity arises.

Use this outline to build a clean, crisp blurb:

  • Introduce your startup and give a clear description of what problem you’re solving. Keep it brief.

  • Detail how much you are raising, the round type (pre-seed/seed/series A), when the round kicks off, and what the funding unlocks for you (runway/ most important use of funds).

  • Include 3-4 exciting bullets that capture investor’s attention and make them want to book a call with you. These could include:

    • Founder(s) background and track record/expertise.

    • Market traction (sales, commitments).

    • Market size, growth and your advantage over other competitors.

  • Ask for the meeting: Make your call to action clear.

Core Blurbs, FTW 🔥

A core blurb is a foundational piece of content that can be used in unlimited ways.

Add your core blurb to cold/direct outreach to cut through the noise for an investor you don’t know. Include it in a wam, forwardable intro to create a clear message that can be quickly and easily sent along.

Perfect your core blurb and email outreach to sharpen the clarity with which your startup is being presented, close more requests for meetings/calls, and get investors excited to work with you.

👉 Feeling inspired, but need more targeted fundraising support? Go from core blurb to term sheet, with my help.

Every other week, I’ll be reaching out to my network to get their take on important questions on every aspect of fundraising. Got a question you’d like me to ask? Let me know. This week, we’re talking valuations.

Q: How did you determine your company’s valuation during your latest round?

“We had a clear understanding of the dilution we were willing to accept and gathered multiple term sheets, each with different valuations. By leveraging these offers against each other, we were able to secure the highest valuation."

- Pre-Seed Founder, $4M+ raised, US.

“Determining our valuation involved a formulaic approach. We assessed a number that would not make the next round difficult to achieve while ensuring we didn’t sell more than a certain percentage of the company."

- Series A Founder, $30M+ raised, US.

“We looked at comparable businesses in our category to gauge where they stand in terms of scale and funding. We decided early on not to adopt an aggressive stance on valuation, focusing instead on building the business for the long haul and ensuring we raise the necessary funds.”

- Seed Founder, $8M+ raised, US.

“Valuation is driven by supply and demand. You are a supply of one, and the more investor interest you generate, the better valuation you can negotiate. We try not to set a number ourselves early on. Let the investors set it, then use other offers to negotiate upward."

- Series B Founder, $35M+ raised, US.

Thanks for stepping Into the Ring 🙏

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