How it Works

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How it Works

 

Financial planHere’s an overview of how the process works.

  • Have your business plan ready so you can respond to any query you send.
  • Next write your query or we can write it for you.

o   If you are writing your query, we will send you guidelines to follow.  Then, send us your letter for a review, which includes suggestions for improving your letter and a light editorial polish.  Should your letter need major changes or a rewrite, we’ll suggest that. This letter is extremely important, especially the subject line, because this is what will get an investor to open your e-mail and want to know more about your business.  Think of this query as a marketing pitch letter.

o   If you want us to write the query, send us a 2-3 page overview of your business, including an executive summary, key selling points of your business, amount of capital needed, and bio information about you and your management team. You will get a draft of the query letter to review and make any additions and changes.  Then, your letter gets a final editorial polish, and you do a final review before the letter goes out.

  • Once your query letter is finalized, we send your query by e-mail to the venture capitalists and other investors interested in that stage and amount of funding, type of industry, and geographic area.
  • We regularly update our databases through various means, including reports of changes in personnel, test e-mails, and returns forwarded to us by many clients.
  • If you want to exclude particular individuals or companies from your e-mail, we can do this using the names or e-mails you provide.
  • Sometimes we include multiple contacts at a company, since they may have similar interests in the funding level and type of industry, but there is no way to know in advance who will be interested in a particular project.  This way you can multiple chances to gain interest in your project.  Then, if you get multiple responses from one firm, you can work out who will handle the project — a great problem to have!  Just let the interested investors know who else in the company is interested, explain you didn’t know who to send your query to, and let the investors decide who wants to handle the project – or maybe they will want to work on it together.
  • We use a special software program to send out your query under your own name and e-mail address, so all replies will come directly to you.  You will also receive a copy of your e-mail that has gone out, along with a report listing the names and companies of all VCs who have gotten your query.  This report will help you keep track and follow-up with your responses.
  • After your e-mail query goes out (generally on Sunday night through Thursday morning to avoid sending queries on the weekends), you will usually get a very quick response, sometimes within an hour or two, though most contacts respond within the first or second day.  The level of response will depend on your project, though on the average in our tests, we got a 10% response rate and a dozen requests to see our business plans
  • Once you get responses, be ready to respond with more information, from an executive summary and deal memo to your complete business plan.
  • While investors commonly will accept e-mail submissions, some will ask you to send your business plan by regular mail.  Ask about preferences and only send attachments if the person is willing for you to do so.
  • After you send off your material, expect to wait a few weeks to a month or two for a decision.  It can take a few weeks for a VC or angel investor to read your material.  Then, even if the prospective investor likes it, your plan will generally have to be presented to others in the company for approval.
  • In short, the Investing Connection will open the door for you.  After this, your success depends on the strength of your business plan and the appeal of your business.