Warm Intros Over Cold Emails To Reach The Right Investors

You have a brilliant startup idea, a convincing pitch deck, a solid business plan, and the dream to take it to the next level. But none of it matters if you can’t get them in front of the right audience, i.e., investors.

The average venture capital firms receive more than 1,000 proposals per year. While cold emails and DMs are a way to go, more often than not, they get lost in a crowded inbox. So, what really works in the startup world, and what is the best way to find investors and secure meetings with them? Warm introductions.

Importance Of Warm Introductions With Investors

Without knowing about you or your company, no investor or venture capitalist (VC) would be willing to invest in your startup. It takes investors one bad referral to erode the goodwill and social capital they have accrued over the years. So, they’d be skeptical to take a chance on an unknown commodity. That’s precisely why warm introductions are so critical – they build credibility, boost trust, and are the faint difference between scoring a meeting and getting lost in a flurry of emails.

Once you land a warm introduction with an angel investor or VC, it can accelerate the fundraising process, helping your startup scale.

How To Secure Warm Introductions With Investors

Wondering how to secure warm introductions with investors, especially if you’re just starting out? Here’s a step-by-step guide:

Step 1: Navigate the target market

Before you start your funding journey, familiarize yourself with the market landscape. These are some key questions that you need to ask:

- - Is the market bullish or bearish?
  - What is the market sentiment like?
  - Who are the top investment players?
  - What kind of funding stage is your company at?
  - VCs, angel investors, accelerators, or incubators – which kind of investors are active?

Step 2: Audit your network

There’s a reason it’s called a warm introduction – because your real-life connections ‘warm up’ the investors, softening the way so you can start off on the right foot.

The best person to ask for an introduction is someone from your professional network – mentors, former colleagues, alumni, advisors, previous investors, or even friends. Study their professional backgrounds, learn about their interests, and check if their investment criteria align with your business specifics. Do your homework thoroughly before reaching out to any investor.

Step 3: Leverage LinkedIn

First, create a list of potential investors who are aligned with your startup’s industry. Once you have clarity on the kind of investors you want on board, get on LinkedIn, a platform made for forging connections, and use its search bar to scout for investors.

Explore the list of mutual connections you share with an investor, prioritizing those who have a trusted relationship with them. Identify a connection with the strongest link to the investor and a history of successful collaboration.

Craft a personalized message to the chosen mutual connection, succinctly explaining your startup and why you believe the investor would be a good fit. This is sales 101. Actively engage with your connections to make a lasting impression. Like, comment, or share their posts consistently to shape genuine interactions with them.

Subtly ask them to facilitate a warm introduction with the investor and give them a good enough reason to do so. If the referrer agrees, provide them with a brief overview of your startup and help them with a pitch deck and the necessary documents required to make a strong case for you.

A warm introduction requires double opt-in, i.e., the connector ensures to get approval from both sides before proceeding.

Once you’re in touch with the investor, express gratitude to the mutual connection for their assistance and keep them in the loop throughout the process. At this stage, keep your executive summary and financial model handy to strengthen your investor outreach.

Step 4: Put yourself out there

Relying only on one channel will take you forever to secure a warm introduction. If you don’t have esteemed VCs and investors on your list, you can always develop your network from scratch.

Diversification is key, not only in investing but also with respect to investor outreach. Attend industry events, conferences, and seminars to meet potential investors or connect with entrepreneurs. Be an active and participating member of the entrepreneurial ecosystem to form new connections and meet investors. Here’s your chance to bring value to the community, share ideas, and get insights on boosting your business.

You can also enlist on online funding platforms or reach out to accelerators and incubators who may show interest in your startup.

Step 5: Draft the perfect introductory email

You know your startup the best. So, offer a forwardable email to your introducer (written from your perspective, not your referrer’s), which they can share ahead in one click. Amidst an ocean of messages to the VC, how does your email stand out? Here’s an email structure you can follow:

- Start your email by thanking your introducer.
  - Write a crisp blurb about your company, your product offerings, and target customers.
- Mention your KPIs and traction received.
- Share your funding round and expectations.
- Elaborate on why they would be a good fit as an investor.
- Schedule a meeting based on their convenience and end your email with a powerful call-to-action.

In case you do not hear back from the investor, don’t hesitate to follow up, but don’t spam their inbox. Each follow-up is a chance to update them about your startup’s growth. Share valuable information that creates a sense of urgency and FOMO (fear of missing out). Share your pitch deck only if the investor seems hooked and asks for additional information.

Instead of just focusing on conversion as the end goal, get into a meaningful conversation with the investors. Don’t send the same email template to all your investors. Customize each email according to the investor’s profile and their background.

Way Ahead

Let’s assume you’ve been introduced to investors interested in your startup. So, what’s next? Ensure you are prepared from the get-go, way before securing these warm introductions.

- - Know what kind of investor you’re looking for. Most investors have a sweet spot in which they prefer investing, depending on a specific type of industry and their expertise, the stage of development, a particular geographic region for practical feasibility, and the amount of money to be invested. So, understand where you fall in that mix to attract the right kind of investors.
  - Be prepared. You never know when you may procure the warm introduction you’re vying for! So, if you see that window of opportunity to meet an investor, you must give it your all because such meetings are hard to come by. Keep your pitch deck ready because you don’t want to let yourself or your referrer down.
  - Engage with your connections’ posts and leave comments to foster stronger relations. Staying active on LinkedIn makes your presence felt and keeps you on top of everyone’s minds.
  - Once you connect with an investor, update them monthly with your startup’s key metrics. Provide a detailed quarterly financial progress report, and highlight your YoY growth in your annual futuristic report.

Investor outreach is a long-drawn-out process. So, if you want to go from 0 to 1 or 100 quality intros, patience is key. Many perceive warm introductions as unequal because not everyone might have access to connections. However, an introduction to an investor does not guarantee a check.

Rome was not built in a day, and neither will your network. If you believe in your startup’s growth and work hard to build meaningful relationships, such introductions can always be earned.