What are the best ways to build an investor relations strategy from scratch?

Yes, do as much due diligence as you can going in to make sure you are not wasting your time pitching investors that are not a good fit for what you are building. — Once you identify those investors develop a good comms rapport. Open and consistent communication is key for investors to see your work ethic, progress and communication style — that’s also how you get them to trust you. Have a set cadence for how you will communicate and hold yourself accountable to it. Share key metrics, wins, exciting opportunities but also challenges you are experiencing — and don’t forget to ask for help. I really appreciate founders who share challenges upfront so we can help if needed, but most importantly so we are not caught off guard.

When it comes to investor outreach, it is essential to do a proper fund analysis and people you are reaching out to. The reasoning comes from properly filtering out the investors according to your geography, stage, industry, ticket size and VC’s relevant investments. Also, funds typically have multiple investment verticals, so it is important to find people that are dealing in the field the startup in, otherwise, you waste yours and VC’s time. To spend your time efficiently, invest time in funds analysis, aim at taking 20-30% of funds from the total pipeline that appears on Crunchbase (with all the necessary filtering), then find the right people and customise your outreach to each fund. Do not go into unethical spray and pray approach.

I prefer to automate outreach and use very wide audience, one and the same message for everyone. Let’s say you need to add all healthcare investors. You go to crunchbase, download all healthcare VCs in certain location and using the same outreach message like: “Hi, I know you are very passionate about healthcare, just like me. Let’s find way to add value to each others businesses”. You always work just with those who connected you right? If you do this job manually, adding one by one, you might not have connections in weeks. If you automate it with software and send 30 messages per day to people from a list, in two days you’ll have your first replies. After that you can figure out if they are relevant or not.

Identifying and understanding your potential investor base, tailoring communications to their interests and concerns. Develop a compelling narrative that clearly articulates your startup's vision, strategy, financial performance, and growth potential. Regular and transparent communication is key; provide consistent updates through newsletters, reports, and meetings. Establish a dedicated section on your website for investor information and use social media for broader engagement. It's also crucial to be responsive to investor inquiries and feedback. Leverage tools and platforms that facilitate investor relations, and consider seeking advice from mentors or professionals experienced in investor communications to refine your approach.

In the VC world, relationships are key. An HBR survey shows over 30% of deals come from leads by VCs' former colleagues or acquaintances, 20% from other investors, and 8% from existing portfolio companies. Only 10% result from cold pitches, while nearly 30% are initiated by VCs. A venture partner’s network, rich in trust and referrals, is invaluable for tailoring pitches and securing investor interest, demonstrating the importance of their role in facilitating connections within the venture ecosystem.

Want to get VC funding? First, you must convince investors that you're a company of the future, not the past. Companies of the future understand the past and are familiar with companies in that area before them. They can also analyze failures and learn lessons so they won't be in such a situation. Moreover, they can pick or create markets with high growth potential. Last but not least, thanks to technology and business model, they are scaling their company impact exponentially.

A compelling and relatable story can wield a magical influence in the early stages of your entrepreneurial journey. Numerous instances exist where founders secured their first round of investment solely based on a well-communicated story that resonated with investors. Therefore, possessing a robust narrative, coupled with a grand vision to create a significant global impact by addressing a genuine problem, can work wonders for you. Additionally, incorporating key figures like TAM, SAM, and SOM in your story will provide an added advantage.

In my view, crafting a compelling startup story is indeed a crucial aspect of business strategy12. It’s not just about presenting facts, but about weaving a narrative that resonates with your audience. I believe that the heart of a startup story should be its unique 'hook’1, something that sets it apart and makes it memorable. This could be an innovative solution to a problem, a unique market opportunity, or even an inspiring journey of team. Furthermore, a startup story should not only highlight the company’s value proposition and potential but also its impact and the difference it is making. This approach can create an emotional bond with the audience, making them feel more invested in the startup’s mission and success.

In the realm of IT, particularly metaverse software development, your startup's narrative is crucial. It's not just about the technology, but the vision of a more inclusive digital world. As a leader, emphasize how your product contributes to fair access and equality within the metaverse. Your story should resonate with investors who are keen to back ventures that not only promise financial returns but also align with broader social values and the potential for transformative impact. This approach will differentiate your venture in a market that's increasingly valuing ethical and inclusive innovation.

The best founders I know raise funding in-between rounds. What I mean by this is that founders who keep an appropriate group of potential investors in the mix (light touch check-ins or written investor updates) are doing pre-marketing between rounds. Then, when the startup is officially ready to open the round, investors are prepped and ready to go (and some may have already tried to pre-empt).

I believe in the power of seeking referrals from investors, as they often have extensive networks that can open up new opportunities. Ultimately, showing commitment to the vision and demonstrating reliability are key to fostering strong, long-term relationships with investors

Investors want a few things other than returns and they all revolve around emotional intelligence. Communication, truthfulness and transparency. If you can do those three things you will develop relationships that will follow you throughout your career and potentially fund your next idea/startup.

Emerging markets founders or others "out of the loop" may need to start with concentric circles. If you're not experienced pitching in the "language" (style, terminology etc.) of VC you may want to develop a network of trusted people closer than the VC, but in that direction who "get" what you're about and what you're doing. So, for example, making a beeline for the investors at a conference to queue up and give unwelcome pitch may be less useful than finding other serious participants who you can chat with and get advice and connections from. You may talk to a founder, or a lawyer, or a corporate who are trusted by investors. If you get them excited they can open the door so you get a proper hearing.

Put great systems in place to always give you an overview of all your encounters with investors. Ensure you don't overlook opportunities by neglecting follow-ups. Stay connected with contacts, especially high-quality ones who may have gone silent. Leverage a dependable CRM system for effective lead management—your success hinges on your ability to track and stay engaged.

You must master the art of the follow-up. Everyone is busy, everyone is doing their darn best to keep up with everything that's happening, but inevitably there will be that one email that falls through the cracks and the opportunity is lost. Don't let that be the reason why you fail! Keep creating touch points and sending traction emails to everyone on your list, especially the ones that were really high quality but mysteriously have gone cold. Use a solid CRM process to make sure none of these high quality leads fall by the wayside. Your ability to track your process can make or break your success here.

In the realm of IT, particularly within the burgeoning metaverse software development sector, leveraging technology in investor relations (IR) is not just a convenience but a strategic imperative. By automating and integrating IR tasks, we can ensure that our pitch decks and newsletters resonate with the immersive experiences we aim to create. Moreover, utilizing CRM systems and analytics allows us to maintain a pulse on investor engagement and sentiment, fostering relationships that are not only built on financial prospects but also on shared values of inclusivity and fair opportunity.

As a VC, I emphasize the importance of strategic alignment in building investor relations. Startups should not only attract investors but also seek those whose goals and values align with the company's. It is crucial for entrepreneurs to understand not just the capital they are seeking but also the added value each investor can bring, whether in the form of industry expertise, networking, or strategic support. Therefore, the selection and engagement of investors should be a thoughtful process, going beyond financial capital and focusing on developing long-term partnerships that can drive sustainable growth and innovation for the startup.

Como um VC, enfatizo a importancia da alinhamento estratégico na constru??o de rela??es com investidores. Startups devem n?o apenas atrair investidores, mas também buscar aqueles cujos objetivos e valores estejam alinhados com os da empresa. é crucial que os empreendedores compreendam n?o só o capital que est?o buscando, mas também o valor agregado que cada investidor pode trazer, seja em forma de experiência no setor, redes de contato ou apoio estratégico. Portanto, a sele??o e o engajamento de investidores devem ser um processo pensado, indo além do capital financeiro e focando no desenvolvimento de parcerias de longo prazo que possam impulsionar o crescimento sustentável e inova??o da startup.

One thing that's helpful: Win ocer the junior analysts and interns via cold outreach on LinkedIn They are the initial gatekeepers for the VC funds so make sure you reach and impress a junior, who will fight for you internally with the partners Especially if starting cold

The game is to move all of your leads through your fundraising funnel at the same rate. If one is getting close to terms sheet, use that as a proof point to get all your other potentials to the same point in the funnel and start creating some FOMO. Too often I see founders go all in on the one lead that seems to be moving the farthest, the fastest, and then get screwed over when that one lead pulls out. Diversify your funnel - keep all your eggs in your baskets rolling to the finish line together.

JUST SET GOOD EXPECTATIONS FOR YOUR COMMUNICATION CADENCE AND DO WHAT YOU SAID YOU WOULD DO. Don’t overcomplicate things…..