By Lucy Parkinson, Research Manager, LSN
LSN continually stresses the importance of producing quality marketing materials. Every client is advised of best practices for investor outreach. A poor presentation can hinder even the most disruptive technology from gaining traction with investors.
Recently, an investor responded to a client’s introductory email by saying it was the best he had ever received. So here we dissect that introductory email, using generic details rather than any identifying information.
Our client’s first step was to explain who he was, that he was aware of the investor’s criteria, and why he believes that his company is a good fit.
My name is John Smith, and I am the CEO of ABC Medtech, a partner of Life Science Nation (LSN). After reviewing your investment criteria and mandate with LSN, ABC seems closely aligned with [name of investor’s organization] investment priorities. After reading the brief introduction below, please review our pitch deck for detailed information.
In his first paragraph, our client began to cut through the noise and prove the relevance of his message to the investor. The client also directed the investor’s attention to the email’s attachments.
Next, our client spelled out what he was looking for: growth-stage capital for a product that’s on the market and that has specific, measurable goals for success.
ABC is seeking growth capital to accelerate the production and sales of our game-changing medical technology and to promote our mission of decreasing mortality and reducing surgical errors in [indication area].
Our client then provided a compelling two-sentence description of the product and invited the investor to click through to the company’s website to see photos and videos of the product. By providing this means of engagement, our client was able to get the investor’s interest and obtain feedback via metrics: if an investor clicked through to the website, that’s an indication of interest that’s worth our client’s follow-up time.
In the next part of the email, our client detailed how much capital he was seeking and what the company was going to do with it to further its mission.
ABC seeks to capitalize the business with up to [amount] in capital to scale production, build inventory, accelerate commercialization, and enhance marketing and sales capabilities.
The client also went on to briefly outline the product’s major customers, the revenue it is generating, and its projected revenue for the near future. These specifics gave the investor a solid picture of ABC Medtech’s position in only a few lines of text.
Finally, our client explained ABC’s strengths as a growth-stage device company and provided a call to action that will provoke a response.
Steady growth can be sustained without capital, but the firm risks losing its window of competitive exclusivity. ABC has limited competition and significant competitive advantages, and it is poised to dominate a rapidly growing medical market.
This email is an example of how to succinctly define an opportunity to an investor. You can’t be generic; a company in a different sector with different key talking points should introduce itself in a completely different way. It’s also important to think about what will compel each investor to act; you might make a different pitch to a charitable foundation than you would to a hedge fund. But whoever you’re speaking to, conveying every necessary detail as concisely as possible is the key to ensuring that your introduction has impact.
What impression will you make on the next investor you email?
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