We won’t go into detail about what to look for in your investors this time, but definitely you should look for investors interested in the problem you are working on.
I have been on both the side of the founder and the investor. So here is what most people do: cold-email investors. Sending a note on LinkedIn or an email you found in a database is perfectly fine. Actually this is something that I definitely recommend to do, but only for specific targets. In 99% of the cases those cold emails go nowhere, yet spending a decent amount of time.
These notes typically come with a cryptic piece of text where you try to tell the investor what you did, what you are doing and what your vision is. Mixed with your team’s background and your fantastic SEO. You attach your pitch deck and breathe. Done!
Let me tell you: This is very hard for an investor to digest at scale, and too costly to connect and understand your business.
Alright, so what works then?
We propose we say good bye to the introductions and the conversations. Investors ultimately want to see execution data. Of course they eventually want to hear about you and your vision, and motivations to work on the problem you are solving. But in order to build trust, they’ll need data.
Those that have extremely good connections can afford to stay stealth but the majority of us cannot. The alternative so far has been chasing investors, only to be spammed by investors when you don’t need them anymore.
Databell is here to change that. Create your profile, input some basic information and then complete every month an operational update. That update you can share with investors via an invitation to view your profile on Databell.
Important: All the data that founders upload to Databell remains private and property of the founder. You decide who sees your data and when to stop sharing data.
Investors love to see startup data, if only because there’s so few structured data out there. But also, through Databell they are able to assess hundreds of companies without opening multiple emails, spreadsheets or files.
Why structured data instead of the metrics most relevant to my business? Investors receive thousands of applications from startups, and each one has its own north star metric. You will stand out if you report on a metric they can relate to. Just imagine for a second an investor that had to compare Amazon Prime subscriptions, with miles flown of Delta flights and bookings for Model S Teslas.
Bottom-line, if they are interested, they will reach out. Meanwhile keep working, nothing will improve more your chances of receiving investment than improving consistently your operating metrics.
The startup investment world is changing really fast. We have companies like Angel List disrupting the fundraising process or Microaquire disrupting small M&A and you don’t need to go far to see the general public interesting in venture capital.
Did you know you can raise money from other players beside venture capital firms? There’s family offices who are increasingly more active in the space, syndicates are exploding thanks to Angel List syndicates, micro-funds that may be hard for you find online,…
When you set up a profile and start reporting monthly your progress you are giving yourself the chance to talk to investors that feel less comfortable swinging by the fences. These investors are less “institutional” but can be tremendously helpful to you.
Certainly sharing data with investors through Databell maximizes your chances of finding the best investor for YOUR project.