Approaching & Attracting Investors
Investors receive an enormous amount of inbound requests, and they typically invest in only a small percentage of the companies that reach out to them. Therefore, it's critically important that you craft your outreach strategy and messaging carefully, and that you do your best to prime yourself and your company to attract investors.
- Courting With No Traction (1)
- Decision Makers (1)
- Handling Cold Prospects (1)
- Identify Decision Makers (1)
- Scheduling Meetings (1)
- Unanswered Outreach (1)
- Good Company Qualities (2)
- Negative Qualities (2)
- Courting a Lead Investor (3)
- Getting Introductions (3)
- Investor Interests (4)
- Emailing Investors (5)
- Finding Investors (5)
- Getting Meetings (5)
- Raise Process & Strategy (11)
Posts by Month
The question I get asked most often is “would Homebrew like to invest in my startup” (and we do our fair share of chasing too -> “please let us invest in your startup!”). The question I get asked second most often is “if not Homebrew, will you introduce me to some VCs who would like to invest in my startup.” There’s a reason why I won’t – because it means putting my reputation on the line for a founder I don’t really know. And in this business, reputation is very important.
One of the most important things in writing an effective cold email is to keep it short. However, communicating all the things necessary to elicit a response in 3-4 sentences can be extremely challenging. One way I’ve been able to overcome this and start dialogues with many c-level execs and big time entrepreneurs is by communicating my message in a more visually engaging format that’s easier to consume than text.
You need strong alternatives to hack a term sheet. Create alternatives with focus: pitch and negotiate with all your prospective investors at once. Focus compounds scarcity and social proof, which closes deals. Focus also yields a quick yes or no from investors—either way, you will soon get back to building your business.
It is very common for investors to get introduced to founders with the proviso that a term sheet will be signed in the next few days. As a result, founders and investors are spending very little time getting to know each other before entering into long-term business contracts. This is bad news for everyone.