This is Alejandro Cremades, and today we’re going to be talking about how to use psychology
to improve cold investor emails. Before we get started, make sure that you hit that Subscribe
button, and this way, you will never miss out on any of the videos that we roll out
every week. Investor emails are essential. You’re going
to have to send them out if you really want to get that money in. Now, when they are cold
emails, meaning that you have never met those investors in the past or there was no introduction
that was made, it’s a bit more tricky. In today’s video, we’re going to be breaking
it down for you and giving you step-by-step guidance so that you’re able to get in front
of those investors with a bang and get that money in. So without further ado, let’s
get into it. Why are they called cold emails? Essentially,
what you want to do is get the introduction, someone in common that you have with investors,
someone that perhaps could make that warm introduction so that you have that social
proof. If you don’t have that, and you need to go direct without having ever met that
investor in your life, that is a cold email. Most investors say that cold emails don’t
work. But I actually find that that’s not true because investors, for a living, need
to meet with entrepreneurs. Whenever they can see a good opportunity, it doesn’t matter
where they are or who introduced them. They’re going to do whatever it takes to get into
that investment opportunity. That’s why if you know that investor has
an investment thesis that they’ve created where they would be excited about the potential
opportunity in investing in a company like yours, you should reach out directly if you
don’t have anyone in common. So, in my opinion, I believe that cold emails actually work because
those investors invest for a living. Having that introduction from someone helps
them to get more trust as social proof and knowing that there are people in common that
you guys share. But, ultimately, it’s not necessary. So if you do not know anyone, you
can just reach out, and believe it or not, it actually works.
How do you make it work for you? At the end of the day, what you want to do is go after
people that are going to be very inclined to invest in your business. How do you find
those? You can use tools like Crunchbase, PitchBook, Mattermark. With those tools, you’re
going to be able to identify who the investors are that have been very active in the last
6 to 12 months investing in companies that are similar to yours that are investing either
in your geographic location, in your industry, in your financing cycle, meaning the ticket
size that you’re seeking. Those are the ones that you’re going to be reaching out
to, so you need to make it work for you, and you need to make sure that investor aligns
with exactly what you have going on. The first thing is choosing the right subject
line. Without a good subject line, they’re not even going to open your email. Those investors,
for the most part, are extremely busy individuals. They’re receiving hundreds of emails a day,
and you need to make sure that you’re standing out.
Some things or ingredients that you want to take into consideration when crafting that
subject line are the following: The email subject line should not exceed 45-60
characters. Use questions to generate enticement.
Share statistics and numbers to be precise. Use references and names that are familiar.
Use simple yet powerful words to convey your message.
Once you’ve come up with the actual subject line, then it’s time to come up with the
body of the email that you’re going to be drafting.
Overall, you want to keep the actual body of the email short and brief. You want to
keep it to three paragraphs maximum and in a way in which the first one is where you
are talking about how much you admire them and why you’re reaching out.
In the second one, you are giving some background on yourself and the business in a very clear
and concise way. The third one could be the call to action, perhaps suggesting to get
on a call or to have a meeting. Then you say, “Your best,” and that’s pretty much
it. Some of the other highlights and critical
factors to keep in mind when you’re putting together the body of that cold email are the
following: Provide a quick introduction of who you are.
Let them know you’re familiar with their investment practices.
Highlight some facts and statistics in numbers and figures.
It is best to use bullet-points and bold italics to highlight important points.
You also need to make sure that it is personalized. The last thing that you want is to grab a
template that you’re using to mass email to everyone and use the same one. You want
to use things that you have in common. Maybe you guys support the same team. Maybe you
went to the same university—anything that you have in common or anything that you’ve
read. Maybe there was an article in which they were
mentioned, and it was a good article on them. You could use that and throw it in the email
so that they can see that you’ve actually been following them, that you know them well,
and that actually, you’ve been basically sitting down and crafting that email yourself.
Some of the things to consider when you are thinking about personalizing the email could
be the following: Names of the companies they invested in
Apparent trends of investment history Preferred industries of investment
Investment minimum and maximum limits Average size and valuations
Online preference and preferences Social media trends and likes
The next thing is to tell a story. You want to leave those investors in a way that you’re
touching them, you’re moving them, and you’re inspiring them with whatever you’re sharing
about your business, especially when you’re giving some background as to what you’re
doing. When you’re thinking about the storytelling side of it. Some of the key things to consider
are the following: Point out how the world is and has a certain
underlying problem. Draw attention to the changing environments
and conditions in the world and the solution that you’re bringing.
Point out a transformation shift that has already taken place in the world and how your
company is part of it. You can also add other things in there where
you’re telling the story. You can talk about why, in the first place, you got really involved
in this business. Like, what was the sequence of events that led you to actually start this
business, and why you’re so passionate about this business? Then you can talk about the
market, why it’s growing, why you’re right now in Blue Ocean Strategy, why it is the
right time in history to execute doing what you’re doing.
Then, the how. You can talk about the team that you assembled, some of the accomplishments
that you’ve done, some of those metrics, and close that story with a bang so that they
are captivated—also, a story that is relatable to them on the problem or the solution that
you’re bringing to market given some of the past experiences that investor may have.
From a psychology perspective, you also want to throw a lot of validation in there. You
should do some name-dropping, especially if you have people in common. You can go on LinkedIn
and see who you share in common with that specific investor. Maybe there are people
from the same school that you’ve attended, that you know, that you have in common, maybe
a professor. Maybe it’s a colleague from one of your former jobs that also knows that
investor. Or, maybe, there’s an association that you both are a part of, and there is
someone in common there, as well. It’s always nice to throw in some names
and last names because that’s going to be familiar to that investor. They’re going
to feel at home when you’re sharing some of those names and last names. That’s critical,
as well, for the social proof component and aspect of it.
Drafting a cold email is not easy. That’s the truth. But there are always great templates
out there that you can use. But again, you want to personalize those, so that it comes
across in a way that is strong and powerful. So, hit a Like on this video, and then also
leave a comment and let me know how you’re thinking about sending out emails to investors.
Subscribe to the channel so that you don’t miss out on all the videos that we’re rolling
out every week. And if you’re raising money, send me an email at alejandro@pantheraadvisors.com.
I would love to help you out with your fundraising efforts. Thank you so much for watching.