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Personalization is overrated: 5 keys to craft messages to investors efficiently, and get them to meet you:
Personalization has become a buzzword in the startup world, with many founders believing that tailoring their message to each investor is the key to unlocking investment opportunities. While personalization does have its merits, it’s crucial to recognize its limitations, particularly when reaching out to investors on LinkedIn.
In this blog post, we will explore the pros and cons of personalization in investor outreach and offer practical tips for striking the right balance to maximize your chances of securing investments.
The Personalization Dilemma
On the surface, personalization seems like a surefire strategy: the more you tailor your message to the individual investor, the more likely they are to respond positively. While this is true to some extent, there is a hidden downside to over-personalizing your outreach.
Although spending more time crafting personalized messages may lead to higher conversion rates, most of the additional meetings you secure will be with investors who are inherently less likely to invest in your startup.
Understanding Investor Priorities
The most relevant investors—the ones most eager to invest their money and most likely to write you a check—are those who are genuinely interested in your startup and the investment opportunity itself.
These investors prioritize facts and figures over personalized flattery. They want you to get straight to the point and provide the information they need to make an informed decision about your startup.
Their decision to meet with you is based almost exclusively on the facts presented about your startup. They effectively pre-qualify themselves, so when they agree to meet with you, you’re already at an excellent starting point.
Scale vs Personalization
As mentioned, the more time you spend personalizing your message to a potential investor, the more likely you are to get a response from them. However, keeping in mind that the best investor are most likely to respond to your basic pitch without caring about a very personal message, wouldn’t you be better off spending your time researching investor profiles so that you can reach out to more of them?
The time you spend figuring out something personal to say to an investor, could be spent on examining more investor profiles and expanding your reach. You will do better sending a message that contains a basic friendly outreach and a brief pitch to ten well-researched investors, than a very personalized message to only three. Use your time wisely.
Striking the Right Balance
Given the limitations of personalization, how can you strike the right balance between personalization and efficiency in your investor outreach? Here are four key components of a successful outreach strategy:
- Research the Right Investors: Invest time in researching potential investors to understand their investment preferences, industry focus, and track record. This will help you identify the most relevant investors for your startup and maximize the chances of securing investments.
- Position Yourself Effectively: Your LinkedIn profile is an essential tool for positioning yourself as a credible founder. Ensure your profile accurately reflects your experience, skills, and the value you bring to the table. A well-crafted profile will serve as a strong foundation for your investor outreach efforts.
- Craft a Compelling Message: While personalization is essential, it’s crucial not to lose sight of the importance of a clear and concise message. Develop a short message that conveys the investment opportunity your startup presents in the best way possible. Include relevant facts and figures to get the investor’s attention and demonstrate the potential for growth and return on investment.
- Basic personalization: Of course, make sure you are using the correct first name in your message. It could also help to mention where you found them, or that you noticed their experience in a sector or domain relevant to your startup. No need to go deeper than that.
- Keep Track of Your Efforts: Monitor your outreach efforts and track your progress. Analyze the data to identify trends, successes, and areas for improvement. Adjust your approach as needed to maximize your chances of success.
Conclusion
While personalization can be an effective tool for engaging potential investors, it’s important to recognize its limitations and avoid over-relying on it in your outreach efforts.
By striking the right balance between personalization and efficiency and focusing on the key components of successful investor outreach—research, positioning, crafting a compelling message, and tracking your efforts—you can maximize your chances of securing investments for your startup.
In the end, the most relevant investors are those who are genuinely interested in your startup and the investment opportunity it presents. By focusing on delivering a clear, concise, and data-driven message, you can attract the attention of these investors and pave the way for a successful partnership.