You’ve worked tirelessly on your pitch, and you’re ready to start reeling in those big fish. The only problem is, you have nobody to pitch. Making that initial connection with the right investor(s) can often be a bigger challenge than raising capital. In this post, learn not only how to get in front of more investors, but how to get them to hear you out (and hopefully bite!).
Start by building a list of prospective investors; you may want to start with individuals or firms that typically invest in businesses within your niche or industry, but don’t cast your net too wide to start with.
Do your research; you can get names and the information you need from a variety of sources:
- Through industry connections — from friends to former colleagues, let people know you’re looking to expand your network of investors to get names, contact details, and sometimes even a personal introduction.
- Online networks — online communities are as good a place as any, think AngelList, SeedInvest, CrunchBase, or even directly through LinkedIn (we’ll revisit LinkedIn)
- Events — industry events, conferences, and even meetups all serve the purpose of bringing the right kind of people together. You may just thank yourself later for holding onto those business cards.
Once you’ve got names, your next step is to reach out directly. Unsurprisingly, investors are pitched a lot, so focus on establishing a professional relationship first, and the sale later.
Unless you have managed to nab a business card at an event, or you got their details from a mutual contact, LinkedIn is going to be your best bet. Plus, you’re focusing on that connection now; nothing else.
Whether you use InMail or decide to send a connection request right off the bat, then be sure to include your introduction. This could go something like:
“Hi {name}, you’ve done some impressive work with {cite one project or business you know they’ve been involved with}. As a fellow entrepreneur, I’m always looking to expand my own network with industry experts. If you’re open to it, let’s connect! {Your name}”
If you do have a mutual contact or got their name from an event, now is the time to leverage that. Here’s how you can easily tweak the above template to fit.
“Hi {name}, {contact’s name} recommended to reach out. As a fellow entrepreneur, I’m always looking to expand my network with other industry experts. I’d love to chat more about {topic they would be interested in} — let’s connect! {Your name}”
Should they accept (and it’s rare for an investor not to want to grow their network), you’ll want to follow up within a couple of days with more information on who you are and what you’re doing — this is where you want to open up that conversation and get to the next stage.
“{First name}, so pleased to have connected with you.
I founded {company}, we {problem you solve}. In just {time} we have successfully managed to {an achievement} and we’re only just getting started. {Include industry stats — show a gap in the market, or as they see it, an opportunity}. This is where {your company} comes in. We plan to {your vision}, and we’re currently raising capital to do just that.
Do you have 30 minutes for a call or coffee next week to discuss? {Your name}”
Remember that while most pitches may get turned down, your meeting doesn’t have to be if you can show your value proposition early on. Even if one of these people isn’t right for your project, they may know someone who is; don’t be afraid to ask. Don’t have a pitch deck? Get your free template here.