Luke Sophinos

Luke Sophinos

12-10-2022

17:00

I’ve raised ~$30M for my startup, most of it through cold email. Fundraising is about WHO to email and HOW to email. My 5 step process you can copy to raise $$ (🧵). Reading Time: 5 minutes Value: Millions of $$$

With investors, your process should look something like this: Phase 1: Find Investors Phase 2: Get a meeting Phase 3: Raise $$$ Let's first understand how to find investors...

Let's say you're building a Chrome Extension. Go to and find all the startups that are building browser extensions. Compile a list.

Within Crunchbase, select a startup, within the financials section you can easily see all its investors. Do this for every startup and build a list of prospective investors.

Now that you've made your list of prospective investors, it's time for phase two. Secure the initial meeting.

You need to compile a spreadsheet of 300-400 Investors and answer the following questions: 1) Which round do they typically invest in? 2) How much do they typically invest? 3) Do they lead rounds or follow? 4) Which similar companies have they invested in?

Investor thesis are usually around a certain market. SaaS, Crypto, Financial Services, etc. If an investor has funded a chrome extension before, they are generally believers in the whole 'space' and will want to fund multiple non-competitive companies within it.

Once you have their emails, you need to write a killer first email. A good email will have: 1) Personalized opening 2) Proof that you're capable 3) Brief and clear description of the company 4) Show traction 5) A clear ask

Personalized opening example:

Show that you're capable:

Brief and clear description of the company:

Show traction:

I send out my cold emails in batches. Group 1: C List Investors Group 2: B List Investors Group 3: A List Investors Go from least compatible to most compatible. Why? Because your pitch will improve over time, don't go for tier A funds until you're ready.

Then, I use to know who's opening my email and who hasn't. I also track other interesting email analytics that can help me determine if my cold email is working or if it needs iteration.

Before you take any investor calls, you need to ensure you have a killer pitch deck. Study examples of successful pitch decks. Here's AirBnB's Seed Round deck:

I'll write a thread on building a successful pitch deck but for now it's all about the above steps to get that initial meeting. Remember... Fundraising is not like sales. IT IS sales. Leverage the above approach and I guarantee you your connect rate will increase.

Since you made it this far, here are 4 free resources of 1,000+ active investors:

Thanks for reading. If you've learned something, retweet the first tweet so others can too. For more content like this, follow @lukesophinos I share my learnings founding, operating, investing, and advising vertical software companies. Onwards!



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