Fundraising can be one of the most challenging aspects of launching and growing a startup. Cold outreach, when executed effectively, can help startups connect with potential investors, mentors, and partners who can propel their business forward. Learn more about how to connect with potential investors through successful cold outreach in this blog.

Successful Cold Outreach

What Is It?

Cold outreach is about contacting potential investors who have no prior relationship with you or your startup. This can involve sending direct emails, messages on social media, or making phone calls to individuals a startup believes could be interested in their product, service, or investment opportunity.

Types of Cold Outreach

Cold Calls

A cold call is an unsolicited phone call to businesses or investors to pitch a product or an opportunity. Calling offers a unique benefit that the other forms do not have, which is direct communication with the person. The startup may be able to build rapport quickly and receive direct feedback that they might otherwise not get.

Cold Emails

A cold email is an unsolicited email that a startup may send to potential investors about their business or product opportunity. Emailing allows for detailed communication, easy-to-track responses, and gives the investor time to review the information at their convenience with the opportunity to go back and review details.

Direct Messaging

Direct messaging is a more common form of communication on social media. It allows for a more informal avenue and can be an easier way to start a conversation. With the growing number of people using social media for cold outreach, there may be a higher chance that an investor will respond to the startup’s cold message.

Finding the Right People

Finding the right people can be an important step in cold outreach. Targeting the right individuals and utilizing online platforms can help a startup find opportunities .

Research Your Target Audience

First, identify the investors who typically fund startups in your industry. Look for venture capitalists, angel investors, or other individuals that have a history of investing in startups. Additionally, startups can also use LinkedIn to find investors who are actively looking for new opportunities. It can be important to attend industry events, conferences, and networking meetups to expand the startups’ connections.

Utilize Online Platforms

In addition to using LinkedIn to find a target audience, other online platforms like AngelList, PitchBook, and Crunchbase can provide valuable information on funding rounds, investor interests, and contact details. Social media is also becoming a way for startups and potential investors to connect. Startups may want to follow investors on X and other social platforms to understand their interests and recent activities to determine if they could be potential investors for the startup.

How to Craft Your Messaging

Once the startup has identified the potential contacts and investors, it should move on to crafting messages that are compelling and resonate with the potential investors. Start by addressing the recipient by name and mentioning mutual connections or shared interests. Mentioning common ground can build rapport and show that the startup did research. Highlight the reason for reaching out to them specifically. Reference their previous investments or projects that align with the startup’s vision.

Next, the startup needs to create a clear value proposition. In a few sentences, the startup should explain what it does and the problem it solves. It can be important to make sure to articulate the potential for growth. If the startup has any traction (users, revenue, partnerships), the startup may want to share key metrics that could demonstrate potential. Finally, it can be important to end the message with a clear call to action. Whether scheduling a meeting, asking for feedback, or simply a response, the startup should make it easy for the recipient to know how to proceed.

Examples of Cold Outreach

Cold Call

Hi, is this [Recipient’s Name]? My name is [name], and I’m calling from [company name]. We [description of what company does and how it solves a problem in the industry]. I noticed you’re involved in [industry/field], and I’d love to see if you might be interested in learning more about [company name] and if you’d consider a strategic investment in my company. Do you have a few minutes to chat?

Cold Email

Hi [Recipient’s Name],

I hope this message finds you well! My name is [name] and I’m the founder/co-founder of [company name]. [description of company].

We launched in [month, year] and have generated [x] number of revenue while [in beta, doing trials, etc]. [Insert information here about current customers and investors].

[Traction and Numbers]

We are raising a round of financing and I want to introduce myself to see if we might be a good mutual fit. [give more information about what your company does].

We have a great team. Our customers love our products. We validate our enterprise use cases. We’re raising this round to [reason for fundraising].

Below are links to our one-pager and deck. If you’d like some additional background info, please let me know if [company name] sounds like a good fit.

I’d love to schedule a 30-minute call with you to learn more about our company. Do you have time this week or next?

Best,

[Your Name] [Your Contact Information]

Direct Message via Social Media

Hi [Recipient’s Social Handle],

I’m [name] from [company name], and we [description of company]. I’d love to chat about [company name] and how we are solving [industry problem] by [company solution]. Would you be open to a quick DM conversation?

Tips and Tricks

Here are some helpful tips and tricks for startups that may be conducting cold outreach:

Follow up strategically: give your initial outreach some time—typically 5-7 days—before following up. This can show persistence without being pushy. A simple follow-up email or message should reiterate the original outreach and include a gentle reminder of the startup’s value proposition.
Use a CRM tool: keep track of your outreach efforts and responses using a Customer Relationship Management tool. This can help startups stay organized and follow up effectively.
A/B test your messaging: experiment with different messages to see what resonates best with your audience, then tweak your approach based on feedback and response rates.
Leverage referrals: whenever possible, seek introductions from mutual connections. Warm introductions can help increase your chances of a positive response.

Final Thoughts

Cold outreach for fundraising can be daunting, but with the right strategies, startups can turn it into a valuable tool. By targeting the right individuals, crafting personalized messages, and following up strategically, building meaningful connections may lead to obtaining potential investors, mentors, and partners.

Want to learn more about reaching out to investors? Check out the following MicroVentures blogs to learn more:

Are you looking to raise capital for your startup? Apply today to start raising capital with MicroVentures!

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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.

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