2 min read How to Raise Funding Step 2: Building Investor Engagement
You have a good list of investors that are interested in your deal, but how do you get investor engagement?
You need to introduce your deal to the investors and demonstrate why it’s a good deal, the operative word here being “DEMONSTRATE.”
Most startups tell the investor why it’s going to be a good deal; superb product, great team, great market, great future, etc. The key is to SHOW them. Start by highlighting your traction with customers, the experience and ongoing work of the team, and the improvements on the product.
Investors see dozens of deals every day. You can stand out by remembering one thing: Everyone promises, few deliver.
Every startup has a great future. Every startup promises the moon. So what does the investor do? Look for evidence of meeting milestones and a sense of momentum behind the deal.
Your outreach to the investor is a campaign, not a one-time contact. You must demonstrate that you have traction. The team must be doing great things. The product must be progressing. If you can’t do anything until you have that $500K, then the process will get tough.
You have to show you can do things with little or no funding. Use campaign mailers to tell your story. Over the course of several mailers, you need to showcase your deal and how it works.
Investors are busy. They don’t have time to read 5000-word emails. They’ll read a half-page, maybe a little more, and that is it. You need to tell your story over a series of emails as we work our way into the busy lives of the investor. Break the information down into smaller pieces and schedule them out so the investor can see your progress regularly.
Read more in the TEN Capital eGuide: https://www.startupfundingespresso.com/how-to-raise-funding-eguide/
Hall T. Martin is the founder and CEO of the TEN Capital Network.TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: firstname.lastname@example.org