In this article, I will provide you with an email template to approach business angels for your equity crowdfunding campaign.
We have discussed at length how important it is to build momentum for your equity crowdfunding campaign. You want validation before launching in public both in the number of investors (“crowd”) as in total quantity invested (“funding”). The funding element of this validation will mainly come from Business Angels.
Ideally, you will want an introduction from a common contact or have met them face-to-face at an event. As the last resort, we might need to cold email them to get them interested in our business. In any case, here’s an email template that you’ll be able to adapt to any circumstance. But first…
Some considerations ahead of using the email template
Before sending a single email, there are two things you will need to consider.
- Update your LinkedIn profile to reflect that you’re working on the relevant startup that you’re planning to crowdfund. Edit your headline and get the most relevant experience in your profile to feature first. The investors are likely to check your profile!
- Research the investors you would like to approach – this is crucial as most investors won’t put money on your company because of your industry, company stage, location, SEIS/EIS eligibility, etc. They’re usually quite vocal about this, so do your homework. You also want to understand what’s the area of expertise of the person you’re contacting – finance, marketing, sales… Some great tools for your research are Beauhurst, Crunchbase, Dealroom LinkedIn and even Google!
- Send the emails from a professional address. Personalise them to the last comma, send them on plain text and avoid using tools like Mailchimp at this stage
Top tips for a killer email
- Give value from the beginning of your email. Don’t waste time introducing yourself (there’ll be time for that if the investor is interested. For the moment this is not important)
- The first challenge will be to get the Business Angel to open your email. That’s why a crucial part of this template is the subject line
- If you manage to get them to open the email, the next challenge for you is to avoid them deleting it and get them to engage with it
- Attach your one-pager in the email (no need for the full pitch deck yet). You will also need your elevator pitch. We discussed all of these pieces in the article 5 key documents for equity crowdfunding
- Ask specific questions on the email related to the area of expertise of the investor (go back to your initial research). For example, you could ask about your go-to-market strategy, specific metrics or even the use of the money for the round. Even if they don’t end up investing, you might receive really valuable feedback!
- End with a call to action to continue the conversation. Don’t ask them to book time with you – you’re creating a barrier for them to respond. Propose a date and time to get the ball rolling
- Rembember: the objective is to build a relationship at this stage – not to secure investment yet. As someone really clever said:
“Ask for investment and you’ll get advice. Ask for advice and you’ll get investment”Unknown
- Get feedback from your circles about your email. Iterate to get to the best email possible!
- Finally, don’t despair if you’re not getting many responses from the first business angels. Look at where the problem could be and iterate again!
- Use a free tool like Hubspot to track opens of your email, so you can time follow-ups well. If the email is never opened, change the subject!
The email template
So without further ado, here’s the template for you to adapt to your business and circumstances:
Subject (crucial to get them to open the email. Lead with value!): Working on revolutionising the xx industry, seeking Seed investment
Body of the email
[If introduced]: (Name of introducer – put them in copy) gave me your email address as you’re investing in [your industry].
[If met in an event] It was great to meet you at the event AAA. I’m following up on the conversation we started there about my current project.
[If cold emailing] – go straight to the next section.
I’m working on my new startup XX. [Insert your elevator pitch here]
[Reasons to believe here – ideally, other investors backing your venture but it could also be traction on the market]
We have already secured investment from A, B and C [Business Angels / VCs] and it’d be great to have you on board. I have attached an investment summary for your feedback.
In particular, I’d love to hear your views on [insert question about their area of expertise].
Would you be available [specific day, specific time] for a follow-up call?
Founder and CEO of YourStartup
Wrapping it up
In general, email opening rates are very low. On top of this, Business Angels are busy beings that receive hundreds of emails and typically have little patience. All of this might discourage you from trying to email them to get their attention.
But, as we’ve seen, they’ll be an important part of your equity crowdfunding campaign. Hopefully, with this template, considerations and tips, I’ve given you enough tools to overcome these barriers and establish a conversation that, eventually, will end up with some investment.
Please do share your thoughts on the topic on the comments section or, if you’d like to ask me any questions (or help you with your equity crowdfunding campaign) don’t hesitate to get in touch.