Using AngelList and LinkedIn to Connect with Potential Investors

Challenge

As a founder, startup fundraising can feel like running a marathon. First, a founder has to research and identify the right investor audience. Then, the founder tries to build and leverage his or her network to create warm introductions, but even getting in the door is difficult. Investors’ emails are often flooded with introductions, pitches, and demo decks. Assuming the founder finds a way in, the founder still has to pitch, follow-up and nurture those investors.

One question we get often is, “How many investors do I need to meet to close a seed round?” One rule of thumb we generally cite: 10X the number of investors you’ll need to fill your round. Ultimately, if you’re looking to close a seed round raising $500K-1M, you’ll probably need to meet with 100-150 angel investors. If you’re managing to get 3-4 investor meetings a week, the whole process can take between seven to twelve months for a founder to secure funding.

SocialMatterz wanted to revolutionize the process and provide a new way for founders to discover, engage, and nurture potential investors by leveraging data and social media platforms.

Solution

Leveraging social media platforms to surface, connect, and nurture relationships with investors is powerful, because it isn’t commonly done. As one investor noted, “It is extremely rare that I will take a cold pitch without an introduction. JD’s solution put us together in a way that I was compelled to learn more. Very rapidly I became an investor in what I believe to be a unique approach with ubiquitous appeal.” But people typically don’t leverage social for a reason – it’s time-consuming, tedious, and requires manual input from time-strapped founders – until now.

SocialMatterz combines human intelligence and integrated technology to connect and set appointments for you with investors on LinkedIn at an incredibly low cost.

Discover: Using AngelList, as well as other social platforms, SocialMatterz used technology to identify and database over 20,000 VC’s and investors from across the globe, but these investors weren’t all in the target audience – some of these investors only made B2C investments or invested primarily in hardware, for example.

To surface the right target investors, SocialMatterz leveraged technology to cross-reference each investor’s investment history looking for any past investment in related ventures, or co-investments with SocialMatterz’s investors. This helped SocialMatterz pinpoint the 500 investors that would be the most responsive.

Engage: SocialMatterz then monitored these investors across multiple social media platforms, including Linkedin, Twitter, and AngelList, for relevant content, including, tweets or content posts involving fundraising, social marketing, and startups.

Once SocialMatterz identified an appropriate post, a team member read the post and content, and then engaged with the investor by crafting personalized responses requesting feedback or advice. This process ensured that the first point of contact with the investor was not only constructive, but personal as well.

Nurture: After an initial engagement was made on one platform, SocialMatterz employed an omnichannel approach to connecting with investors in order to generate deeper conversations. SocialMatterz engaged with the investor on LinkedIn or AngelList to further develop the connection by referencing the initial engagement and using it as a conversation starter. This transition between platforms was key in developing a relationship with investors. The more platforms you connect on, the more likely they are to meaningfully engage.

Results

When the campaign began, JD Chang, SocialMatterz’s founder, had 50 connections that identified themselves as investors, which was mostly cultivated through Capital Factory and his personal network. Like many founders, he was struggling to get in front of enough investors, and he was averaging 1 or 2 meetings a week.

In a span of one month, SocialMatterz’s solution connected its founder, JD Chang, with 370 new investor contacts – an increase of 740%. Those connections generated 90 LinkedIn conversations, and ultimately, over 25 investor meetings – a monthly increase of 600%. Ultimately, the SocialMatterz solution saved JD several months worth of fundraising effort and built his investor network which he plans to leverage for future fundraising rounds.

By | 2017-07-13T09:23:10+00:00 April 6th, 2017|Case Studies|0 Comments

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