How to Raise Funds for your Startup with Warm Intros to Investors on LinkedIn

How to Raise Funds for your Startup with Warm Intros to Investors on LinkedIn

In this blog we are going to share the Dos and Don'ts of building an investor network on LinkedIn.

When you don’t have an investor network, pre-seed fundraising can feel quite frustrating. As a startup outsider who's been there, this blog will equip you with the knowledge and tools to navigate this crucial step.

Here's the not-so-secret secret: Fundraising is about building relationships and leveraging warm introductions to investors.

The Power of Warm Intros

Forget cold emails and generic LinkedIn messages. Investors get bombarded with those all day long. What truly captures their attention are warm introductions – connections made by someone they trust, vouching for your potential.

These introductions open a door to a genuine conversation, increasing your chances of landing a meeting and securing that coveted pre-seed funding.

As a pre-seed founder, especially as someone outside the Silicon Valley bubble, how do you build a network that yields valuable warm introductions?

Here's your step-by-step guide, packed with actionable insights and insider tips.

Step 1: Leverage Your Existing Professional Network

Think of your network as your secret stash. You already know more people than you realize who could be instrumental in connecting you with investors.

Here's how to unlock the treasure:

  • Former colleagues: Reconnect with past co-workers, especially those who have transitioned into investor roles.
  • Industry contacts: Reach out to advisors, creators and consultants who might know investors interested in your space.
  • Professors and alumni: Don't underestimate the power of your academic network. Professors and alumni can be valuable investor connectors, especially within your university's entrepreneurial ecosystem. This was how the founder of Rella raised their $1 million pre-seed round.

Do: Be specific about your ask. Don't just say, "Can you connect me with investors?" Instead, highlight your company's unique value proposition and the type of investor you're seeking.

Don't: Spam your network. A genuine conversation is key. Reconnect with the intent to build a meaningful relationship, not just make an ask.

Step 2: Master the Art of Investor Networking with LinkedIn

LinkedIn is your goldmine for warm introductions.

Here's how to use it effectively:

  • Second-degree connections: Look for investors who share second-degree connections with you. This is a powerful approach as it establishes a level of trust and familiarity.
  • Industry groups: Join industry-specific LinkedIn groups where you can connect with investors actively seeking startups in your space.
  • Targeted searches: Use advanced search filters to find investors based on their location, investment interests, and previous investments.

Do: Optimize your LinkedIn profile. Showcase your expertise, highlight your accomplishments, and include a compelling summary that explains your startup and its mission. Be clear about your Startup’s “WHY” in your About section.

Don't: Blast generic connection requests. Personalize your message, mentioning a shared connection or referencing their recent activity on the platform.

Step 3: Craft a Compelling Introduction Request

Now that you've identified potential connections, it's time to craft a compelling introduction request email. Remember, you're asking for a favor, so make it easy for your contact to say yes.

Do: Keep it concise and clear. Explain who you are, your company's mission, and why you'd like to connect with the specific investor.

Do: Highlight a shared connection or interest that piqued your interest in the investor.

Do: Offer to provide additional information, like your pitch deck, but only if the connection is established.

Don't: Write generic emails that could be sent to anyone.

Don't: Beg for an introduction. Frame it as a valuable opportunity for both parties.

Remember: Always offer to return the favor whenever possible. This builds goodwill and strengthens your network.

Step 4: Utilize Tools Like Score My Deck (Your Fundraising Co-Pilot!)

Building a network and crafting effective introduction requests can be time-consuming.

Here's where Score My Deck can become your secret weapon.

Use it to streamline your process by:

  • Researching investors: Score My Deck helps you identify potential investors based on your industry, funding stage, check size, and the problem you are solving. Simply upload your deck and ask Score My Deck to show you investors that match your deck.
  • Writing outreach emails: With our AI models and prompts, Score My Deck helps you craft personalized and compelling messages for your connection requests or bespoke LinkedIn email messages.
  • Generating forwardable emails: Score My Deck allows you to create concise blurbs about your startup that your network contacts can easily forward to investors. This removes the burden from your contacts of having to write a separate email introduction. Someone said to me once, “you make it so easy for us to support you” Make it easy for people to support you. . .

Building Genuine Investor Relationships Takes Time

Don't expect overnight success. Building a strong network of angels with valuable connections takes time and effort. Focus on cultivating genuine relationships with people who share your passion, understand your “WHY” and align with your vision.

Offer your help and support to the people in your network before asking for their help.

Remember, it's a two-way street.

Breaking Down the Barriers: Pre-Seed Founders Outside Silicon Valley

Feeling like an outsider to the Silicon Valley scene doesn't have to hold you back. Here's how to leverage your unique perspective as a pre-seed founder outside the tech hub:

  • Focus on your local ecosystem: Look for investors and angel groups in your region who are actively backing early-stage startups. They may be more receptive to local talent and understand the specific challenges faced by businesses in your area.
  • Highlight your scrappiness and resourcefulness: Being outside Silicon Valley often means you've had to be resourceful and bootstrap your startup. This can be a valuable asset, demonstrating your ability to achieve results with limited resources.
  • Emphasize your unique market perspective: Your outsider viewpoint can offer valuable insights and a fresh approach to industry problems.

The Takeaway: Warm Introductions are Your Key to Success

By leveraging your existing network, mastering LinkedIn, crafting compelling introduction requests, and utilizing tools like Score My Deck, you can build a network that yields valuable warm introductions to investors.

Remember, success in fundraising doesn't depend on who you know initially, but on your ability to build meaningful investor connections and showcase the potential of your pre-seed startup.

Start building those relationships, and securing the funding for your startup with Score My Deck!