How To Craft The Perfect Investor Email Pitch (Part 2)

Emmanuel Nnaemeka

2 years ago

This is the secret to the biggest funding stories you see on news crafting a perfect investor email pitch. Most of these funding recipients have a technique they apply when reaching out to investors. In our previous article, we showed how entrepreneurs reach out to investors.

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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.

Traction

Every investor is out for traction. Traction is telling your investor how quickly your business is gaining momentum. Every investor is interested in a business that’s taking off. However, you have to specify specific examples of how business is taking off and how it will possibly continue on a higher plane in the coming months and years. A bad example of Traction is seen below:

“Our business has grown to over $50 million in sales in just the first two years,”

The above traction looks too vague and cannot create an impression in the mind of any investor. Hence, you may leave the investor lost. A good example of Traction is seen below:

“In the past five months, we’ve added 100,000 new users to our site and are doubling that rate every month.”

This traction is very specific. It speaks about figures, which is what all investors are looking for. Moreover, it speaks of something plausible – “five months” and “100,000 new users”. You will notice that the pitch didn’t generate revenue because investors are more interested in long-term growth than just revenue. They want to know if the momentum is sustainable.

Introduce Your Team

Your team tells any investor if your startup can pull off what you are doing. The investor is always interested in the capacity and credibility of your team; he doesn’t just want to invest in greenhorns. Also, you must deal with specifics when introducing your team. Hence, introduce team members and their background and how it is salient to the success of your company. This is important. It is good that you have someone with a Ph.D. in Medicine, but it is useless if your company is a FinTech startup. It would be salient if you are running a MedTech. But in this case, we are trying to get funding for a FinTech company. Also, when referencing your team, describe the previous projects they have succeeded in the past, and how critical it is to the success of your team. A bad example of Team Introduction is seen below:

“Our team includes a financial expert with twenty years of experience.”

This isn’t specific and it won’t fly before any sensible investor despite the twenty years of experience. A good example of a Team Introduction is seen below:

“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

Social proofs are endorsements from credible, trusted, and even popular people within a specific industry. When you add social proofs to your pitch you alley the fears of any investor. The question on the mind of every investor is “who else is on this with you?” Therefore, the value of your social proof is proportionate to the credibility of those endorsing you. A bad example of Social Proof is seen below:

You: “I’ve invented an international gateway payment that can help businesses detect cyber fraud.”

Investor: “You’re insane.” A good example of Social Proof is seen below:

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.”

Investor: “Please let me invest.” The investor is awed by the fact that someone in the capacity of Tony Elumelu, founder of UBA Bank and Heirs Holdings, believes in your project and is willing to trust you with $100million. It speaks volumes.

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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.

The Request

After hitting all the high points in your email pitch, conclude by asking. “The ask” should include three main points:

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.

A good example of Social Proof is seen below:

“We’re raising $500,000 in a seed round which we’d like to discuss with you next week if you’re available.”

Final Product

In 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

Got a suggestion? Contact us: editor@connectnigeria.com

The Request

Final Product