When a Bizignite user completes their one page business plan / hypothesis and want to use it to raise capital, KENOVA shares this technique with them:
Identify investors who are sympathetic to or "play" in the field that applies to the startup and get a contact name and email address.
Craft a short (2 sentence) intro / tickler email (see sample below) with one objective and one objective only; to get the proposed suitor to ask for more information! DO NOT TRY TO SELL or SHARE ANYTHING MORE!
- Be ready with:
o Another brief email with a link and password to the Bizignite plan
o Strategic marketing document
o Strategic sales document
o Budget with monthly burn rate
o The deal, i.e., how much funding is required and how much equity it buys
Drip out the information as the investor requests it.
The objective with this approach is to measure and track interest, know where you are in the funding process and make it easier on the investor. That is to say, as opposed to dumping a 25+ page traditional narrative plan in their email inbox, but rather to give them the information in a way they can and want to consume it.
Also, keep a log of each investor and where they are in the process. We also advise our clients to continue to send the intro / tickler email until they get a response, but peronalize it, e.g., "Dear Mrs Smith, I'm sending this email again because I didn't get a response so I don't know if you saw it"
We also advise using a tool like Boomerang for response tracking. This way you will know if someone opened the email or if it bounced (bad email address).
Side note: if you're looking for an introduction via a third party, Alex Iskold has some good advice in his blog post How To Write a Forwardable Introduction Email.
Sample short intro / tickler email:
The structure of the email is:
- The target customer / market and the business idea
The upside / opportunity, i.e., realistic potential revenue.
Dear Mr. / Mrs. ?????
New Startup Corp is focused on the growing senior and caregiving market.
NSC is an interactive educational exercise program for professional caregivers that helps them achieve rapid improvement in daily activities for themselves and those they care for. It can be performed anywhere while requiring just 20 minutes a few times a week.
This is a huge untapped market and with just 10% market penetration (USA), we can achieve $300,000,000 in revenue.
Please reply if you would like to know more.