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How To Cold Email Investors - Michael Seibel
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Y Combinator CEO and Partner Michael Seibel on how to cold email investors. https://twitter.com/mwseibel Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year. Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/ *** Topics 00:00 - Intro 00:17 - Make it short, i.e. 60 seconds or less to read 00:58 - Interested in: the problem you're trying to solve, what your solution is, have you launched, do you have growth, how big you think the market could be, do you have cofounders, are you technical, and do you know something about the problem that you think is controversial. 1:38 - Not interested in: a long history of how you came up with the idea or jargon (see: customer pitch vs investor pitch - https://www.youtube.com/watch?v=pQnOBHNKlgs) 2:17 - Send your email from a company email address with your name in it 3:05 - Decks aren't required but use a common format if including one 4:02 - Track opens 4:14 - Don't make it long 5:27 - Don't immediately request an in-person meeting 6:04 - Don't send multiple follow-ups quickly 6:26 - Don't forget to describe what your company does
Segments Timeline
Cold Emailing Investors: The Basics
Michael Seibel introduces the topic of cold emailing investors, sharing his experience with founders seeking funding. He emphasizes the importance of crafting effective emails that capture investor interest quickly.
"founders often ask me how to cold email an investor when they're interested in raising money and I receive tons of cold emails from founders and I try to actually reply to all of them here are some ti..."
Keep It Short: 60 Seconds or Less
Seibel stresses the necessity of brevity in cold emails, recommending that they be readable in 60 seconds or less. He explains that the goal is to get investors to understand the project enough to want to reply, rather than to sell them on an investment immediately.
"you send me a wall of text if you send me an email that takes two to five minutes to read it's really hard for me to read it in the normal course of me doing my work and so oftentimes I'll store it sa..."
Key Information to Include
In this segment, Seibel outlines the critical information investors want to know in a cold email: the problem being solved, the solution, market potential, co-founders, technical skills, and any controversial insights about the market.
"thing that's important is that in that short email there's some things that I'm really interested in knowing the problem that you're trying to solve what your solution is have you launched or do you h..."
Avoid Long Narratives and Jargon
Seibel advises against including lengthy backstories or jargon in emails. He highlights the difference between customer pitches and investor pitches, urging founders to use simple language that any reader can understand.
"long history of how you came up with the idea what I don't need is a story or a narrative in the beginning what I first need is just raw facts it's even more important that you don't use jargon one of..."
Use a Professional Email Address
This segment emphasizes the importance of sending emails from a professional company email address. Seibel explains how a recognizable email format can positively influence an investor's perception and response.
"next thing is send your email from a company email address and an email address that has your name in it you'd be surprised at how many emails I get from often times really weirdly formatted personal ..."
Decks: Optional but Standardized
Seibel discusses the use of pitch decks in cold emails, stating that while they are not required, they should follow common formats familiar to investors. He advises founders to research successful decks for guidance.
"next is that it's fine to attach a deck to your email but it is not required what I will tell you though is that there are extremely common formats for DAX that investors in Silicon Valley are used to..."
Track Email Opens
In this brief segment, Seibel highlights the importance of tracking email opens to gauge interest. He suggests that knowing whether an investor has seen the email can inform follow-up strategies.
"last thing is track opens if you're emailing investors track the open rate and make sure that people are actually seeing your email now here are the don'ts some of the"
The Importance of Conciseness
Reiterating the need for brevity, Seibel warns against making emails too long. He emphasizes that the primary goal is to initiate a conversation rather than to request a meeting or investment upfront.
"don'ts are the opposite of the do's don't make it long I'm saying this over and over again because the most important thing you want is a reply the most important thing you want is the beginning of an..."
Avoid Immediate Meeting Requests
Seibel advises against asking for in-person meetings in initial emails. He explains that investors prefer to engage in a conversation first, which can lead to more meaningful interactions.
"don't immediately request a in-person meeting many investors have very different styles of how they like to do their first engagement and in reality if you say something interesting the investor is go..."
Don't Over-Follow Up
In this segment, Seibel cautions against sending multiple follow-ups too quickly. He explains that if the email is concise and engaging, investors will respond when they are ready.
"the next is don't send multiple follow-ups quickly you can trust that if your email is short and you have read receipts track opens you know whether someone's are at the email or not and once they've ..."
Clearly Describe Your Company
Seibel concludes with a critical reminder: always clearly describe what your company does in the email. He emphasizes that enticing investors with a clear value proposition is essential for getting their attention.
"the last thing and the most important thing is you don't this is a double negative don't not describe what your company does you'd be so shocked at how many emails I get basically saying Michael I'm c..."