What key information should be included in a short investor cold email?

In a short email, include the problem you're solving, your solution, whether you've launched or have growth, the potential market size, if you have co-founders, your ability to code, and any controversial insights you have about the problem or market.

Why is using simple language important when cold emailing investors?

Investors may not be familiar with the jargon specific to your industry. Using simple, clear language ensures they can understand your business without needing specialized knowledge, making them more likely to engage.

What format should a pitch deck follow when attached to a cold email?

It's best to follow common formats used by Silicon Valley startups. If unsure, search for successful examples like Airbnb's fundraising deck to understand the expected structure and style.

Why should founders avoid asking for an in-person meeting right away?

Immediately pushing for an in-person meeting can make investors uncomfortable, feeling pressured. It's better to first pique their interest with a concise email, allowing them to initiate further contact on their terms.

What is the right order of operations when contacting an investor?

The right order is to first clearly describe your interesting company or project, then get the investor to reply back seeking more information. This creates leverage, rather than demanding a meeting for them to learn what you do.

Key Moments

How To Cold Email Investors - Michael Seibel

Y Combinator

Science & Technology4 min read8 min video

Sep 24, 2019|122,845 views|3,522|62

YC Y Combinator Michael Seibel Socialcam Twitch Justin.tv YC Partner YC CEO Michael Seibel CEO Partner

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Key Moments

TL;DR

Subject lines indicating a company's revenue or funding status are key to investor engagement, but beware of vague or overly long emails that signal a lack of focus.

Key Insights

Investor emails should be readable in 60 seconds or less to ensure they are actually read.

Key information investors want includes the problem, solution, launch status/growth, market size, co-founders, coding ability, and a unique, controversial insight.

Avoid industry jargon; use simple language understandable by anyone, as investors may not be familiar with your specific field.

Utilize a company email address with your name for professionalism and to enable investor tools that provide sender information.

When attaching a pitch deck, adhere to common Silicon Valley startup formats, such as the Airbnb fundraising deck as a template, and avoid industry-specific styles from other fields.

Tracking email opens is important to confirm that investors are actually seeing your message.

Keep it concise: The 60-second rule for investor emails

The most critical piece of advice for cold emailing investors is brevity. An email that takes two to five minutes to read is unlikely to be read thoroughly. Instead, aim for an email that can be consumed in 60 seconds or less. This ensures the investor reads what you've written, which is the primary goal. The objective isn't to sell them on writing a check immediately but to pique their interest enough for a reply. This concise approach demonstrates respect for the investor's time and increases the likelihood of engagement.

Essential information investors look for

Within that brief email, several key pieces of information are crucial for an investor's initial assessment. These include: the core problem your company is addressing, your proposed solution, whether you've launched and have any demonstrable growth, your estimation of the market size, information about your co-founders, and your team's ability to write code. Furthermore, investors are interested in any unique insights you possess about the problem, market, or opportunity that others might overlook or disagree with. Avoid lengthy narratives about your idea's origin; focus on factual, impactful data points from the outset.

Avoid jargon and use a professional email address

A common pitfall is the use of industry-specific jargon. It's vital to communicate in simple language that any friend could understand, regardless of their background. Investors may not be experts in your particular niche. Additionally, send your email from a company email address that includes your name. This appears more professional than a generic personal email or an 'info@' address and allows investors to potentially utilize tools like Rapportive or Superhuman to gain more context about the sender. Emails from unprofessional addresses can set a negative first impression.

Pitch deck best practices for startups

While attaching a pitch deck is common, it's not mandatory for the initial cold email. However, if you do attach one, it must conform to standard Silicon Valley startup pitch deck formats. A good reference point is to search for successful decks like Airbnb's fundraising deck to understand the expected structure and content. Be aware that different industries might have distinct deck styles; opt for the startup norm rather than a style familiar from another sector. Using a template from a successful startup ensures your deck is recognizable and easily digestible for investors.

The do's and don'ts of investor outreach

Echoing the emphasis on brevity, the cardinal 'don't' is making the email too long. Founders often try to secure a meeting, call, or investment in the first email, but the realistic goal should be to initiate a conversation. A back-and-forth dialogue allows for relationship building and deeper exploration. Therefore, an email's burden should not prevent a quick reply. Aim for an email that can elicit a response within 60-120 seconds of being read. Similarly, avoid immediately requesting an in-person meeting, as this can make investors feel pressured. Instead, present interesting information that naturally leads to further exchange.

Managing follow-ups and the cardinal sin of vagueness

Sending multiple follow-up emails too rapidly is another common mistake. If you've tracked opens and confirmed the investor has seen your email, trust that they will reply if interested, either now or later. Bombarding them with follow-ups is counterproductive. Perhaps the most significant 'don't' is failing to clearly describe what your company does. Emails that request a lengthy meeting to "explain what I'm working on" are backward. The investor should be the one seeking more information after an enticing initial message. The correct order is to present your compelling concept first, making the investor want to learn more and initiate contact.

Mentioned in This Episode

●Software & Apps

●Companies

●People Referenced

Cold Emailing Investors Cheat Sheet

Practical takeaways from this episode

Do This

Keep emails under 60 seconds to read.

Clearly state the problem, solution, launch status, growth, market size, and unique insights.

Use simple language, avoid jargon.

Send from a company email address with your name.

Attach a deck in a common Silicon Valley startup format.

Track email opens.

Focus on starting a conversation, not closing a deal immediately.

Avoid This

Do not send long emails that take minutes to read.

Do not include a long history or narrative; focus on raw facts.

Do not immediately request an in-person meeting.

Do not send multiple follow-ups quickly.

Do not fail to describe what your company does upfront.

Do not make investors feel like their arm is being twisted.

Common Questions

The most important thing is to get the investor to read your email and then reply back, initiating a conversation. It's not about selling an investment immediately, but about getting them interested enough to respond.