This was a tough-to-swallow read. https://bit.ly/2W218ag
The truth is, it was painful but not surprising. Grateful to Nerissa Zhang for sharing what so many of us in the Black tech community have to deal with every day, even after paying so many visible and invisible dues.
I shared the [lightly edited] thoughts below in an affinity group and it was suggested that I publish it to a broader audience.
The biggest takeaway is that it is important to recognize that warm intros will continue to be the best intros for the foreseeable future. We are trying to fix it but it will take a while. The sheer volume of entrepreneurs trying to raise VC means ALL investors have to figure out a way to quickly filter incoming deals and getting a referral from a trusted source puts that opportunity at the top of their evaluation list.
LinkedIn can be your superpower. If you are connected to someone that knows the investor you are targeting, then absolutely use that link but honor your first degree connection's time & social credits by sending a request crafted to be forwardable with little to no effort and a bit of an editorial.
Social proof is crucial, in this world and others. Hate it if you must but understand why it exists and do what you can to make it work for you.We recently got cold pinged on LinkedIn by a Black founder. We responded and guided him re: how best to submit his opportunity to us AND how to pitch himself and his business. He came back with an unexpected response. He cold pinged 25 other people, many we know and some others that are currently doing #BLM ballet on social media. We were the only ones to respond.
All that said, there are some cold email hacks that I have recommended to founders of any color or gender. Yes, it is tedious trying to customize outreach at scale but getting investors is brutal for all of us.
Right off the bat, PLEASE research your investors and get a clear sense of what types of deals they like to do. This is very true in the seed and early stage markets. Don't waste your time by wasting theirs. No one is happy and everyone is pissed. I'd also point out that quite a few investors we know, us included, have intake processes on their websites so founders can submit their opportunities. Rest assured that everything that is submitted is read.
Here are my 'cold outreach' suggestions.
1. Make the subject unusual and interesting. Keep the open warm but brief. Can state why you are pitching this fund in particular e.g. they invested in X and your startup is in an important adjacency.
2. What is the problem you have identified? Why is it interesting? How big is the space? SAMs vs TAMs pls.
3. What are you building? Or what have you built to address 2? Timeline and scope of traction, if any?
4. How much are you raising? How much have you raised? If you have any brand name investors or advisors, name drop here.
5. Team bios and recognizable school/job logos; Location of ops.
6. Attach a short prezo or link to a crisp no-reg docsend. Many investors don't like docsend so make sure to mention you can send them the deck if they prefer.
Many founders are upset because they don't get any feedback, even if they ask for it. Yes, it's quite distressing because you have no idea why the investor passed but understand that (1) investors are overwhelmed and (2) they want to maintain optionality just in case you later turn out to be interesting and they have to wend their way onto your cap table.
I know Alfred Lin and he is generally good with sending short feedback. It may not be as verbose as you want but it's just a no. Don't take it personally and keep moving.
Note that no matter how pro-BLM non-minority VCs may appear to be on social media, many are likely not when it really matters or it's not as much a priority for them. Don't take this personally. VCs are pattern matching creatures and when minoritized founders show up, these VCs have very little to anchor their matching 'skills' to, the latter being arguably calcified such that new 'experiences' are unwelcome. Yes, bias is real but always remember you are exceptional, not an exception.
It takes one investor to get the ball rolling. Your quest is for that one, angel or VC.