When your startup is still in the early stages and you’re just looking to get a foot in the door, it can be hard to know how to write a pitch letter to investors.
Writing an effective pitch letter is critical for your success as a tech startup. In this post, we’ll look at some tips for writing one that will catch investors’ attention and make them want to learn more about what you have to offer.
We’ve all been there before: You’ve got an idea that is going to change the world but no money or connections to back it up. You know your concept is great, but now it’s time for some serious marketing.
You sit down at your computer with a blank document open in front of you, ready to start typing away at what will hopefully become the greatest pitch letter anyone has ever seen – but where do you begin?
Pitching your idea to investors can be a daunting task. Even if you have a great idea and a great business plan, it can be difficult to get funding from investors. However, there are things you can do to make it easier for investors to say yes.
One of the most important steps you can take is to write a pitch letter to investors. In your pitch letter, you will lay out what your business does, what makes it unique and how it will make money. You will also outline how much money you need and how you plan to use it. If you are seeking an investor in your tech startup, these tips will help you write the perfect pitch letter:
For your pitch letter to investors, you should strive to be both professional and personable. This is a tricky balance, but it can be done! The internet is full of examples of great pitch letters, so if you’re feeling stuck, take a look at a few. Here are some guidelines for writing yours:
1.Keep it short and sweet: Your letter should be no longer than one or two pages. Remember that investors want to get to the point, so avoid long-winded introductions and get right to the meat of your ideas.
2.Make sure your grammar is correct: Investors will look at your ability to write as an indicator of how you run your business, so make sure there are no spelling or grammar mistakes.
3.Be confident: Investors want to hear that you believe in what you’re doing. Show that confidence by explaining why you think your company will succeed and how they can benefit from investing in it.
4.Be specific: Give enough detail about your product or service to give investors an idea of what it is and how it works without going overboard on the technical details (these can be included later).
5.Include contact information: If investors are interested in hearing more about you and your
Dear [name of potential investor]
I am writing today to tell you about [name of your tech startup]. I believe that my product is the next big thing in [space where your startup operates]. I am writing to request a meeting with you to discuss the possibility of [name of your tech startup] raising funding with your firm.
[Name of your tech startup] is [your elevator pitch]. We are addressing a market that is currently worth $[size of the market in question]. Our competitors include X and Z, who are also targeting this market. However, we have a unique approach that will help us gain a significant market share. We will sell our product/service for $[price point]. We have already secured $[number] in initial funding from [names of seed investors, if applicable], and we plan to launch our first product within the next few months.
We are currently on the lookout for seed funding from angel investors. If you would like to set up a meeting or discuss this opportunity further, please do not hesitate to contact me at [your phone number] or via email at [your email address]. Thank you very much for your time and consideration.
Sincerely,[Your name][Your title at company]
I’ve been involved with startups in one way or another for the past 10 years. This includes founding a few companies, serving as CTO for a couple others, and advising several more. I’m often asked what it takes to succeed in getting funding from investors. There are many factors at play here but the biggest is probably your ability to effectively communicate the reasons why your startup is going to be successful. A well-written pitch letter is the key to convincing investors that you have a great idea and even better prospects for success.
In a nutshell, a pitch letter is an elevator speech for your company that is usually delivered in written form via email or web form. It should concisely detail your idea, identify the problem it solves, explain why it’s a good business opportunity, outline your current progress and achievements, and most importantly tell investors how they can make money by joining you on the journey.
The following is a real-world example of one of my startup’s pitch letters:
If you want a quick answer on whether you should include something, ask yourself: is it likely to make the investor more or less likely to invest? If more, include it; if less, don’t.
If you’re still not sure, one way to test is to imagine that you were already extremely rich and this was just a hobby. Would you still include it? If so, then include it. Don’t worry about sounding like a braggart; what’s important is information.
If there’s something about your background that you think might deter an investor, don’t leave it out in hopes of surprising them later with the good news. Tell them upfront and get it over with, so they can focus on the rest of your letter. And as with other things, if you’re unsure whether to include something or not, err on the side of including too much rather than too little.
Getting into a top tier accelerator is a really good idea. Y Combinator, Techstars, Angelpad and 500 Startups are just a few of the great programs out there. But getting in isn’t easy. It’s competitive. And you have to apply before you can be admitted.
So what should your application look like? How do you get noticed?
These are the questions I got from our readers about the last piece I wrote about accelerators: “Is It Worth It To Join An Accelerator?”
The answer is simple—yes, it’s worth it to apply to an accelerator. The only way to know if you will get in is to apply. The worst that could happen is that you don’t get in, but you’ve gained valuable experience writing a pitch letter and understanding your market even better than before.
So here’s how to write a killer startup pitch letter so that you can increase your chances of admission.