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Let’s briefly look at what we discussed in our previous article. First, while reaching out to investors through email pitching, you have to use a good Subject Line, which will force the investor to open the mail; second, make your connection. No sensible investor will want to do any business with a stranger. Therefore, making a personal connection is like giving a warm handshake. Third, pout out your elevator pitch. This is where you tell the investor what you do and how you are progressing through social proofs. In this article, we can continue with how to craft a perfect investor email pitch in a step-by-step approach.
- “Our business has grown to over $50 million in sales in just the first two years,”
- “In the past five months, we’ve added 100,000 new users to our site and are doubling that rate every month.”
- Introduce Your Team
- “Our team includes a financial expert with twenty years of experience.”
- “Our team includes the former Chief Marketing Officer from First Bank and the Head of Finance Management at Access Bank.”
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When an investor reads this, he is confident that you have the right people on your team. Since you, a building and running a FinTech company, having on your Team guys who have worked in big institutions like First Bank and Access Bank is relevant to the growth of your company.
- Present Social Proof
- You: “I’ve invented an international gateway payment that can help businesses detect cyber fraud.”
- You: “I’ve invented an international gateway payment that can help businesses detect cyber fraud. Tony Elumelu just invested $100 million of his own money to start production.”
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There are other social proofs you can present which can spark the interest of any investor in your startup. You can use the following social proof:
- Advisors: Adding that someone renowned is on the team of your board of trustees signals to investors that someone of great capacity is putting their name behind your company.
- Customers: Informing an investor in your email pitch that you serve Fortune 500 companies, a celebrity, or well-known users will inspire him to take the risk to invest. This helps establish the value of your product as a reflection of its status.
- Media. Presenting that your company has been featured by leading magazines like Forbes, Insider, Connect Nigeria, Tech Cabal or Tech Crunch speaks volumes because it shows that your product is worth talking about.
- Raise Amount. Be very clear on the total amount you need. If you need a total of $1million then let the investor know. By letting the investor know, he can choose to raise a major part of the money or not.
- Funding Stage: This is similar to Raise Amount. Let the investor know what fundraising stage you’re at (Seed, Series A, Series B, etc). Make sure you know the stage you are at before reaching out.
- Timeline: Concluding your request with a specific time to discuss more the opportunity is a good way to seal a perfect email pitch, but make sure it is at the investor’s time, not yours. However, if you are going to be in the investor’s city next week or next month, you can tell him, but let the investor make the final decision.
- “We’re raising $500,000 in a seed round which we’d like to discuss with you next week if you’re available.”
Final ProductIn conclusion, let’s put everything we have discussed above altogether. Here is an example of a perfect email pitch: Friend of Iyin Aboyeji, Flutterwave Inc. Emeka, I noticed that we’re both friends with Iyin Aboyeji from the University of Lagos. I’m in the process of launching a company called Flutterwave Inc. that provides inter-state payment services for businesses and individuals to receive money from anywhere across the globe and saw that you were an early investor in Paystack Inc. Flutterwave Inc. helps over 90 million African businesses avoid driving to traditional banks to carry out international financial transactions by directly offering international payment services through our software application. In the past five months, we’ve added 100,000 new users to our site and are doubling that rate every month. Our team includes the former Chief Marketing Officer from First Bank and the Head of Finance Management at Access Bank. Our advisors have each personally invested in the company and include Tony Elumelu, (Chairman and President, UBA Bank, and Heirs Holdings), Ibukun Awosika (Former President, First Bank), and John Miller (SVP, Gold Bank). We’re raising $500,000 in a seed round which we’d like to discuss with you next week if you’re available. Featured Image Source: FinMark
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