Arnas Bräutigam, co-founder of AddedVal.io, shares insights on how early-stage startups can leverage cold outreach to secure funding. Drawing from experience helping over 3,000 startups refine their pitch decks and connect with investors, he breaks down actionable strategies for engaging business angels and VCs.
Later, he's joined by Mohamed Chahin, founder and CEO to Twain.
Actionable Insight: Cold outreach is a valuable tool when warm introductions are exhausted. A structured approach can improve response rates and lead to more investor meetings.
When and Why to Use Cold Outreach
Most founders begin their fundraising journey within their network, but networks often get exhausted before funding rounds close. While warm intros remain ideal, cold outreach can be a powerful tool, especially in sales-driven fundraising.
Actionable Insight: Treat fundraising like a sales process—if cold outreach works in sales, it can work in securing investors. Consistency is key.
Avoiding Common Cold Outreach Mistakes
One of the biggest mistakes founders make is sending messages that are too long, vague, or lacking a clear ask. Arna shares an example of a poorly structured investor message that failed due to fluff and lack of focus.
Actionable Insight: Keep messages concise, direct, and compelling. Personalization and brevity significantly improve response rates.
How to Structure an Effective Cold Outreach Message
A well-crafted message follows this structure:
- Personalized Greeting – Address investors by their first name.
- Relevant Hook – Reference their past investments or work to demonstrate research.
- Clear Value Proposition – Describe what your startup does in 3-7 words.
- Traction Metrics – Highlight revenue, growth, or another key milestone.
- Low-Friction Call to Action – Ask if they’d be open to reviewing your pitch deck instead of requesting a full meeting.
Actionable Insight: Personalization and clarity make investors more likely to respond. Avoid jargon and keep the ask simple.
Business Angels vs. VCs: Different Approaches
For early-stage startups, business angels are often more receptive to cold outreach than VCs. With over 16,000 business angels in Germany alone, direct outreach can be effective. However, VCs generally prefer warm introductions.
Actionable Insight: Prioritize business angels for pre-seed rounds. For VCs, network introductions remain the best approach.
Cold Outreach Message Template for VCs
While some VCs do invest in startups that reach out cold, it’s rare (about 10% of investments). Arna shares a message template used by EarlyBird Ventures, emphasizing the importance of a clear and structured approach.
Actionable Insight: If cold messaging VCs, be concise, highlight traction, and make a direct but low-friction ask.
Handling Investor Rejections
Rejections are part of the process, but they don’t have to be the end of the conversation. Instead of stopping at a "no":
- Ask for Referrals – "Do you know any professional investors who are always open to new pitch decks?"
- Keep the Relationship Warm – If an investor says you’re too early, request to add them to your investor update list.
Actionable Insight: A rejection doesn’t mean the door is closed. Keep the conversation open and continue building relationships.
The Three-Message Follow-Up Strategy
A single outreach attempt is rarely enough. Arna recommends a structured follow-up approach:
- Initial Outreach – Well-structured, personalized message.
- Follow-Up with Updates – Share traction progress or funding milestones.
- Breakup Message – If there’s no response, send a polite closing note.
Actionable Insight: Investors are busy. Following up strategically can increase response rates and keep your startup on their radar.
Beyond LinkedIn: Creative Outreach Tactics
If LinkedIn messages are ignored, alternative methods can increase visibility:
- LinkedIn Sales Navigator InMail – Allows messages to be sent without a connection.
- Physical Letters – Sending a personalized letter to an investor’s holding company can leave a lasting impression.
Actionable Insight: Experiment with different outreach methods to break through the noise and stand out.
The Power of Social Media in Fundraising
Investors often prefer to "discover" promising startups rather than be pitched directly. Maintaining an active online presence can lead to inbound investor interest.
Actionable Insight: Share successes, milestones, and insights publicly. This increases visibility and makes it more likely that investors will reach out to you.
Measuring Cold Outreach Success
On average, founders who dedicate 5-6 hours per week to cold outreach see:
- 5-15 investor meetings per 100 outreach attempts
- 85-95% rejection or non-response rates
Actionable Insight: Fundraising is a numbers game. Stay consistent, track responses, and refine your approach based on what works.
The Key to Fundraising Success: Storytelling
Investors invest in narratives, not just numbers. Every fundraising round should have a compelling reason behind it.
Actionable Insight: Clearly articulate why you’re raising now, what the funding will achieve, and why investors should get involved. A strong story creates urgency and excitement.
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Note: This blog post is an AI-generated summary of the video using Arbor Storytelling Platform, with subsequent refinements made by the writer and our editorial team to ensure clarity and engagement.
