startups And Financing
Attracting and retaining investors is crucial for the success of any startup. However, many founders struggle to balance authentic communication and conversions when pitching their ideas to potential backers.
Today, we are looking at the takeaways from the second edition of our founders-focused webinar series, Proven Communication Strategies to Boost Investment, done in collaboration with HubSpot for Startups.
Here, we had Robbin Hoogstraten - Regional Manager Benelux at SeedBlink, Eoin McGuinness - Head of HubSpot for Startups, MENA, CEE & UK, and Alex Gavril - CEO & Founder Promocrat, discuss all things communication for fundraising rounds, and this is what you should note down.
Institutional investors, such as venture capital funds, corporate venture capital funds, and family offices, often perform extensive due diligence. Be ready to provide comprehensive materials covering every aspect of your business, including systems, technology, and CRM.
Your documents should be thorough and transparent, but so need to be your footprint. Investors will dive deep into what you show them and what you don’t show them. They will check you out, find out where you come from, what people say about you, how you are rated on Google and more.
Make sure your materials reflect your online footprint and word of mouth from your network contacts. Do they find what you want them to find?
Before approaching potential investors, it's important to understand what they're looking for in a startup. Investors are typically interested in a clear and compelling problem that your startup solves
Here are a few red flags to avoid:
For instance, when an investor peeks at your LinkedIn and sees you're juggling roles at other companies, it sends a message that you're not fully committed to your startup.
Investors seek someone ready to dive in headfirst and give their startup their undivided attention. They want to see that you're putting 100% into making your company successful.
Clear and open communication is key. Decide when you want to see data, how frequently, what data points you are looking for, and in what format you would prefer to get them.
Investors want to feel like they're part of your team. Keep them informed about your progress, both good and bad. Transparency will build trust and strengthen your relationship.
Don’t be afraid to share the bad things. They have invested in your idea because they believe in what you are trying to achieve. So, most likely, they are interested in what you are trying to do and looking for ways to help you out. Investors are there to help you out.
Leverage automated marketing tools to personalize outreach and streamline communication. For example, send your current and potential investors a monthly or quarterly newsletter with company updates. It’s an easy format that automatically goes to their inbox.
Collaborate with your marketing team to enhance direct outreach efforts. Utilize existing marketing channels and personalize interactions to connect with investors.
Accepting investors in your cap table is like marrying someone. When you are developing a relationship with someone, imagine not communicating with them for a really long time and how that affects your relationship. If you don’t communicate after making the deal, discussing both the good and the bad, then you can expect some hard times with your investors.
Use the same approach with potential investors. When you give them regular updates, you get indirect feedback that can be a good conversation starter for later. (Hey! I see you have opened my email./ I see you have downloaded our PDF).
It’s a warmer communication than approaching someone with a cold introduction like “Hey! My name is X, and I am contacting you because Y. Do you have 5 minutes to talk?”
Public relations is an incredibly powerful tool that goes far beyond just disseminating information. When skillfully employed, PR can create a buzz that captures investors' attention at various stages of their decision-making process.
For instance, an investor might be on the fence about joining a funding round during the consideration phase. However, the right PR move, like announcing impressive new funding figures or involving high-profile individuals, can create a surge of interest and urgency.
It’s not just about visibility; it's about creating a compelling narrative that appeals directly to investors' instincts to be part of something exclusive and successful.
CRM software can help you manage your relationships with investors.
Track their interests and interactions with you, and send them regular updates. This will help you stay top-of-mind and engage them in your startup's journey. As your business grows, a CRM grows with you. It can handle increasing clients and investors, making it easier to manage a growing business.
Using a CRM shows clients and investors that you're organized and serious about your business. It reflects a level of professionalism and efficiency that can be very reassuring.
As we wrap up this journey through the nuances of investor communication, remember that each conversation with an investor is an opportunity to tell your story, share your vision, and reinforce your commitment to your startup's success.
Mastering the art of communication is not just about conveying information; it's about building relationships, trust, and excitement around your startup. Read more tips and tricks for your fundraising round on our blog.
SeedBlink S.A. is registered in the Register of the Romanian Financial Supervisory Authority (ASF), under number PJR28FSFPR/400001, as of 03.11.2022 with an EU passport as per European Securities and Market Authority (ESMA) register of crowdfunding services providers.
INVESTORSInvestment OpportunitiesDirect InvestmentSecondary MarketClub MembershipTestimonials InvestorsPricing StructureLog In
COMPANIESProducts & SolutionsApply for FinancingNimity: Equity ManagementTestimonials FoundersPricing structure