Brett Adcock, the founder of Figure AI, once shared a tweet comparing the performance of cold emails and referrals.
His findings showed that cold emails outperformed referrals by a significant margin. This highlights the potential of cold emailing for various business purposes, particularly fundraising.
Whether you have referrals or lack connections with investors, cold emails can be an effective tool when used correctly.
In this article, you’ll learn how to write effective cold emails, what to consider before reaching out to investors, and how many emails you may need to send to receive responses.
Read on to learn the essentials before starting your cold-email outreach journey to raise funds for your startup.
Do Investors Really Read Cold Emails?
Here are some insights from well-known startup investors:
- Aileen Lee, founder of Cowboy Ventures and widely known for coining the term “unicorn,” has stated that she and her partners read every email pitch sent to Cowboy Ventures.
- David Sacks, co-founder and partner at Craft Ventures, prefers short, metrics-driven emails that clearly summarize the investment opportunity.
- Satya Patel, co-founder and partner at Homebrew, reviews cold inbound emails and responds to thoughtfully personalized pitches.
1. Cold Email Response Rates:
The average cold email response rate is often estimated at 5–10%. This means that if you send 100 emails, you might receive around 5–10 replies from investors.
Well-targeted, personalized emails may achieve higher response rates, potentially reaching 15–20% in favorable circumstances. At that rate, 100 emails could generate 15–20 replies.
However, actual results vary depending on the quality of your pitch, the investors you target, and the relevance of your opportunity.
Don't forget to send one or two follow-up emails. Follow-ups can help improve your overall response rate by bringing your message back to an investor's attention.
One follow-up is a good starting point, while two follow-ups can provide additional opportunities to receive a response.
Cold emailing requires persistence and patience. You never know when a response from the right investor could lead to a meeting and, eventually, funding.
2. Things to Consider Before Cold Emailing Investors:
Before you start sending emails, prepare a few essentials. These steps can make a significant difference in your outreach efforts.
1. Build a Targeted List of Investors
Research investors who are interested in your industry, startup stage, and business model. Prioritize those whose investment criteria align with your funding needs.
2. Prepare a Short, Clear Email Template
Create a concise email template that explains what your startup does, highlights its traction, and states how much funding you're seeking. Personalize each email to reflect the investor's interests and investment focus.
3. Plan One or Two Follow-Ups
Follow up with investors who haven't responded to your initial email. One follow-up is a reasonable starting point, while two can give you another opportunity to get noticed.
4. Use an Email Tracking Tool
Tools such as Mailtrack, GMass, or Woodpecker offer email tracking features that may help you understand recipient engagement.
Tracking information can help you evaluate your outreach strategy and plan follow-ups. However, email opens are not always reliable indicators of genuine interest.
5. Set a Realistic Outreach Target
Consider starting with 200 targeted cold emails before pausing to evaluate your results.
This gives you a meaningful sample for assessing your outreach strategy without committing to a large campaign before you know what's working.
Focus on the quality of your investor list and emails rather than sending a high volume of generic messages.
3. Include a Pitch Deck Video to Explain Your Startup Clearly
A strong cold email is only part of the equation. Investors need to understand your business opportunity quickly, and a pitch deck video can help communicate your startup's story.
Why Does a Pitch Deck Video Help?
- Summarizes your startup: Explain the problem, solution, business model, and traction in a concise two- to three-minute video.
- Makes your pitch more engaging: Visuals, concise text, and narration can make complex ideas easier to follow.
- Provides another way to explore your business: A short video can give interested investors a quick overview before they review your full pitch deck.
How to Include a Pitch Deck Video in a Cold Email
You can use a message like this:
“Hi [Investor Name],
I'm [Your Name], founder of [Startup Name]. We've achieved [key metric] in [time period] and are raising [$X] to [specific goal].
I created a short video explaining our pitch deck, including our traction and plans. It's just three minutes long: [Video Link]
Would you be open to a quick chat?
Best,
[Your Name]”
A pitch deck video can help investors understand your startup's value proposition, traction, and vision. However, it should complement your written pitch rather than replace clear business metrics or a full pitch deck.
4. Write a Short, Focused Email
Investors receive numerous pitches, so make your email concise and easy to scan. Focus on the most important information: what your startup does, its traction, the amount you're raising, and why the investor might be a good fit.
Example of a Cold Email to an Investor
Subject: Raising $250K Pre-Seed — 20% Month-over-Month Growth
Email body:
Hi [Investor Name],
I'm Riyan, founder of [Startup Name], a [one-line summary of what your startup does].
We've achieved [traction or revenue metric] over [time period], and we're now raising [$X] to [specific goal, such as expanding the team or developing the product].
Given your interest in [investor's focus area], I thought our startup might be a good fit for your investment portfolio.
I've also prepared a short pitch deck video explaining our traction and plans. It takes just three minutes to watch: [Video Link]
Would you be open to a quick chat?
Best,
[Your Name]
[Website] | [LinkedIn Profile]
Tip: Use accurate, verifiable metrics in your email. For example, if your startup has achieved 20% month-over-month growth, briefly clarify whether that refers to revenue, users, or another key performance indicator.
5. Learn and Improve Your Outreach Strategy
If you don't receive meaningful responses after sending around 200 emails, don't get discouraged. Instead, review your approach and identify areas for improvement.
Ask yourself the following questions:
- Are you targeting the right investors? Make sure their investment stage, industry focus, and typical funding amounts align with your startup.
- Is your subject line clear and specific? Give investors a quick reason to open your email without using misleading claims.
- Does your pitch demonstrate traction? Highlight relevant metrics, customer growth, revenue, or other evidence of progress.
- Is your email personalized? Explain why your startup could be relevant to that particular investor.
- Is your pitch deck effective? Improve your written deck or video if your value proposition is difficult to understand.
Based on your findings, adjust your email strategy, refine your pitch deck, or explore alternative fundraising channels, such as warm introductions and accelerator programs.
Final Thoughts
Cold emailing investors is not simply about luck. It requires research, clarity, persistence, and a well-targeted approach.
Sending around 200 targeted emails can be a useful initial benchmark for first-time founders before reassessing their strategy. However, the right number depends on your startup, your target investors, and the results you receive.
Pairing a concise cold email with a well-crafted pitch deck video may help your startup stand out and communicate its value more effectively. Even a small number of genuine responses can lead to valuable conversations and potentially funding.
Want to turn your pitch deck into a professional, investor-ready video that you can share in cold emails? Reach out today!