Raise More Money in Less Time
Erica was trying to raise money for her startup and saw an opportunity.
Janel, a good friend from school, is connected to an investor in Erica’s industry. So Erica sent a message to Janel:
“Hey Janel! Would you be open to introducing me to Jane? I’m raising money for my seed round and I’d love to have her invest in our startup.”
Janel replied, “Of course! Let me ask her first. If she’s interested, I’ll make the intro later this week.”
Two weeks go by and Erica still hasn’t heard back from Janel.
She follows up.Janel admits that she hasn’t had time to research Erica’s company and write a proper message to Jane. But she’ll do it soon.
Two more weeks go by… and guess what? Still no introduction. 😢
These kinds of situations happen all the time when founders try to raise money. The referrer feels like they have to do a lot of extra work, the founder feels let down, and the potential investor misses out on an opportunity.
Everyone loses.
Luckily, there’s a fix.In Episode 7 of Uncapped Notes, Janel and Eric explain how to write a forwardable blurb that will help you raise more money for your startup.
What is a forwardable blurb?
A forwardable blurb is a simple, compelling description of your company that anyone can pass along to a potential investor in seconds.
An effective blurb has the potential to unblock millions of funding for startup founders. It's one of the most important fundraising assets a founder can have.
Eric Bahn (co-founder of Hustle Fund) uses forwardable blurbs nearly a dozen times a day. It’s a big reason why Hustle Fund recently raised $46.1 million for our 3rd round.
Example of a good forwardable blurb
The goal is not to convince an investor to say, “Yes, I’m ready to invest.”
That’s unrealistic.The goal is to get the investor to say, "Yes, I want to learn more.”
Here’s an example of an email that Erica can send to Janel.
“Hey Janel, thanks for offering to connect to Jane. I think our startup could be really interesting for her. You mind forwarding along this note? Thanks so much. -Erica
STARTUP is a SaaS platform that is proven to increase sales by 50% within one quarter. Our technology joins your existing company data with external proprietary databases we have built to improve qualification of closing.
Since launching earlier this year, we have:
- Closed 37 contracts, driving $52M in incremental new revenue for clients.
- $2.2M in ARR.
- B2B partnership with Salesforce to distribute via their Service Cloud network.”
Our co-founders have 13 years working together at enterprise SaaS with a well-rounded blend of technical and sales skills. We have achieved all this with just $270k raised to date.
Teaser deck: [DOCSEND]
Contact: Erica Smith, erica@startup.com”
A forwardable blurb like this can be passed along in just seconds.Now let’s break down this email to see why it’s so effective.
Five elements of a good blurb
1. Simple request for the referrer
“Hey Janel, thanks for offering to connect to Jane. I think our startup could be really interesting for her. You mind forwarding along this note? Thanks so much! - Erica”
At the top of your message, make it clear on how the referrer can help you.
Asking Janel to simply forward your message is much easier than expecting Janel to craft her own email, which increases the likelihood that she’ll actually do it.
2. Quick explanation of what you do
“STARTUP is a SaaS platform that is proven to increase sales by 50% within one quarter. Our technology joins your existing company data with external proprietary databases we have built to improve qualification of closing.”
This part is straightforward: share a super quick explanation on what your startup actually does.Bonus: use Hemingway App to make sure you’re writing at the 4th-8th grade reading level.
3. Sexiest details of your company
“Since launching earlier this year, we have:
- Closed 37 contracts, driving $52M in incremental new revenue for clients.
- $2.2M in ARR.
- B2B partnership with Salesforce to distribute via their Service Cloud network.”
Add 2-3 bullet points of the sexiest parts of your business. These details should entice the potential investor to say yes to an introduction.
Keep it short. Don’t overwhelm the VC with too many details. Stick with the most compelling parts of your business for now.
You can slowly share more as you build a relationship.
4. Flexing your team
“Our co-founders have 13 years working together at enterprise SaaS with a well-rounded blend of technical and sales skills. We have achieved all this with just $270k raised to date.”
In early-stage investing, 60% of decisions are driven by the quality of your team. Share why your team is so interesting and how you have a unique advantage to succeed in the marketplace.
5. Sharing additional context and CTA
“Teaser deck: [DOCSEND]
Contact: Erica Smith, erica@startup.com”
Share a link to a teaser deck to give more information. And definitely include your contact information so they can reach out to you directly if interested.
Three final tips
- Keep your blurb short. Remember, you have less than a minute to communicate the “big idea” to the investor.
- Have a clear CTA. The goal is to connect with this investor, nothing more.
- In the teaser deck, focus on the five most important things: team, problem, solution, market, and traction.
