The most crucial variable in investor outreach....

CEO of Storm X shares his take on the top 4 variables of a successful investor outreach campaign.

Author

Michael Reza
March 07, 2024

We Got 104 Investors To Respond In Just 60 Days…

Trond Are Gjone

CEO of Fishbuddy by Fiskher

"There are various similar services that help you make "warm introductions" to potential investors. I have tried several. If you look at the success rate, Storm X is by far the best. In addition, the staff have a humble approach and work to customize MY company in the best possible way. We experience a good dialog with individual adaptations where necessary. I give Storm X my best recommendations to all startups out there.”

CEO of Storm X’s Key Takeaways on Investor Outreach

After working with a large variety of startups across all industries, I have come to find that Investor outreach is really difficult…..If you don’t do it correctly. 

Over the history of Storm X, we have worked with all sorts of companies, seeing what works, what doesn’t work, and refining our strategies accordingly. 

After over a year and a half, my key takeaways of how to run a successful investor relations comes down to these four. I have ranked them in order of importance in my own opinion. 

1) Copywriting 

Across all campaigns in all industries, the #1 variable that shifts the trajectory of a campaign is the copy. We could collect a list of the best fit investors and run a multi channel campaign and get zero responses, then change one sentence and get 20 responses. 

Trust me….I’ve seen it happen many times.

Helping investors understand your company, what you want, and what to do next is so important that If I wrote a book on investor outreach, the first 60% would be on copywriting. 

2) Quality of Contacts

A campaign is only as good as the quality of the leads. ESPECIALLY in investor outreach. With how delicate of a process fundraising is and how many people have “Angel Investor” or “VC” in their LinkedIn Bios, most startups end up wasting all their energy reaching out to lists of investors that aren’t qualified at all. 

As the CEO of Storm X, my goal is to optimize our operations to be as efficient as possible. One thing I could do is start using a lead scraper for our data research team so they don’t have to spend so much time collecting ideal investors for each startup. But I cannot do this because of how detrimental it would be for the quality of the campaigns. 

Vetting the investors and ensuring they are quality is how the startups we work with get 20% + reply rates on campaigns.

3) Responsiveness 

If an investor responds to you…get back to them ASAP. While you are still fresh in their brains, you need to push push push to stay there and get them as much information as they need to schedule a meeting. 

I can’t count how many times I see amazing responses from investors for startups we work with that no one responded to. This is crazy to me.

Respond to investors!

4) A Quality Campaign 

Here it goes, the Storm X pitch. At Storm X, we utilize multi-channel campaigns for investor outreach because it multiplies the response rate significantly. Being able to send an email and reference the email in an automated LinkedIn message is the easiest way to get someone to check their email to see what you sent. 

Any tool that allows for multi channel communication is phenomenal for Investor outreach. Storm X just happens to do that since we know it works so well. 

You can check out the video below to learn more about this process and see a campaign live in action.