Why Aren't Investors Responding to Me?

Every time we send an email to an investor, ours is likely one of 100 emails from similarly ambitious Founders that drops into their inbox. We have to figure out what signals they’re looking for in order to get them to even open our email.

June 18th, 2019   |    By: Wil Schroter

In order to keep their sanity, investors have to look for signals to determine which emails to even open — much less respond to. This is where the art of contacting investors gets interesting.

How important are personal connections?

The most important, by far.

If we had to compare an email sent through a trusted connection with a crappy company versus a cold email with a great company, chances are the crappy company would get a response. That's because investors put so much weight on whether the introduction is being vetted through a trusted friend.

But my deal is so sweet, won't that help?

Not if the e-mail never gets opened or read.

The first goal in contacting investors is to get them to even look at you. The second goal is to get them to listen. If we can't connect in a trusted manner that gets their attention, the quality of our deal won't save us.

We've never bought anything from a store we never visited.

Isn't it their job to respond?

Not really. Investors are rewarded for sorting through deals and picking the ones that look promising. That means they only have time to respond to inquiries and deals that they can invest their precious little time into.

Should I send the email again?

You can, but it's probably not very useful. The better approach would be to find another way to get an introduction to the investor through a third party. Most people do this through social networks or through trusted advisors.

In Case You Missed It

When to raise funds (podcast) Sure, every startup could put more money to use. But does every startup truly need it? Ryan and Wil break it down.

How to leverage connections to raise startup capital. Mile Belisto, author of Startup Seed Funding for the Rest of Us, explains how to build connections within the venture community.

How to craft the perfect investor email pitch. Learn the key ingredients investors want to know in your email pitch and stay out of the dreaded trash bin.

About the Author

Wil Schroter

Wil Schroter is the Founder + CEO @ Startups.com, a startup platform that includes BizplanClarity, Fundable, Launchrock, and Zirtual.  He started his first company at age 19 which grew to over $700 million in billings within 5 years (despite his involvement).  After that he launched 8 more companies, the last 3 venture backed, to refine his learning of what not to do.  He's a seasoned expert at starting companies and a total amateur at everything else.

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