How to Effectively Cold Email Investors - Michael Seibel

Michael Seibel offers friendly guidance on the common mistakes startup founders make when cold emailing investors and how to write successful emails. This video is packed with practical tips on how to effectively capture attention and start a conversation at your first point of contact with investors. Below is a chronological summary.

1. Basic Principles of Cold Emails

Michael says founders often ask "How should I cold email investors?" He mentions receiving many cold emails daily. While he tries to respond to all of them, the format and content of the email matter greatly.

• "Keep the email short."

  • Michael says "if an email takes 2-5 minutes to read, it's hard to get through and gets put off." Emails should be readable in 60 seconds or less. This is key to increasing the chances of it being read and getting a response.

• The goal is starting a conversation, not getting investment

  • "Your goal is to make me read your email and want to reply. Not to make me decide to invest."

2. Essential Elements to Include

Michael outlines several critical pieces of information that must be included in a short email.

• The problem you're solving and your solution

  • "Clearly state the problem you're solving and your solution."

• Current status

  • "Let them know if you've already launched a product and if you're growing."

• Market size

  • "Share your thinking on how big the market could be."

• Team composition

  • "Mention whether you have co-founders, coding ability, or special knowledge about the problem or market."

• Use clear, simple language

  • "An investor pitch is different from a customer pitch. Investors may not know your industry jargon, so use language anyone can understand."

3. What to Avoid When Writing Emails

Michael highlights several mistakes to avoid.

• "Don't start with a long backstory."

  • "You don't need the story of how you came up with the idea. Start with facts."

• "Use a company email address."

  • Personal or oddly formatted email addresses can undermine credibility. "Using a company email looks more professional."

• "A deck is optional."

  • Attaching a deck is fine but not required. However, following the commonly used Silicon Valley deck format is important. "Search for Airbnb's funding deck. It's a good reference."

• "Use email open tracking."

  • Use tools that let you check if investors opened your email.

4. What Not to Do in Cold Emails

Michael explains specific behaviors to avoid.

• "Don't write long emails."

  • "Emails should be short and concise. If they're too long, they're burdensome to read and unlikely to get a reply."

• "Don't immediately request an in-person meeting."

  • "Requesting an in-person meeting from the start can make investors feel pressured. Start the conversation via email instead."

• "Don't send quick follow-ups."

  • "Use tools to check if your email was opened. If it was, the investor has likely already decided whether to reply."

• "Don't skip explaining your company."

  • "Surprisingly, many emails simply say 'I'd like to meet and talk' without any company description. This is the wrong approach. First briefly explain your company and idea, and make the investor want to know more."

5. Michael's Final Advice

Michael emphasizes that the purpose of an email is not to persuade the investor, but to start a conversation.

• "Your job is to make the investor want more information."
  • "Provide interesting information briefly and encourage the investor to ask you more questions. This puts you in a favorable position."

Key Takeaways

• Keep emails short and concise. (Readable in 60 seconds or less)
• Include key information: problem, solution, market size, team composition.
• Use simple language and a company email.
• A deck is optional, but follow Silicon Valley style.
• The goal is starting a conversation. Don't demand in-person meetings from the start.

Michael Seibel's advice provides a practical guide for building trust and initiating dialogue in your first contact with investors. This video is packed with essential tips for startup founders