Building an investor pipeline is a sales process that requires preparation, discipline and a multi-channel approach. Success depends on creating a structured investor CRM, writing effective introduction emails, gathering feedback and knowing where to find the right investors. In the UK, most funding rounds are from angels, not VC.
Why is VC funding volatile but angel investing isn’t?
Fundraising is hard, particularly for first-time founders. Venture capital is a game of outliers: VCs need outsized returns to return their fund. Fast growth is non-negotiable if you’re raising from VC and the market can change very quickly.
However, the data shows a different story for angel investors. Most funding rounds in the UK come from angels, not VCs, and angel rounds do not experience the same volatility as traditional VC funding. In the UK, there are consistently around 2,000 SEIS funding rounds a year, regardless of how VC funding is doing.
How do I get prepared for fundraising?
Preparation will make your life easier and is the first step to a successful raise. This process can be broken down into three key actions:
- Create your investor CRM
- Write your intro emails
- Find friendly feedback
What makes a good investor CRM?
Setting up an investor CRM is easier than you think and is essential for staying disciplined. Your CRM should be your “single source of truth”.
Focus on these principles: keep it simple, be disciplined, capture intelligence (not just information) and be action-oriented. Next steps should always be defined.
Your CRM, which can be a simple spreadsheet, should track the following fields for each prospect:
- Name
- Priority/Rating: Track investors you’d really like on your cap table.
- Stage: Track investors through the funnel, from “To Reach Out” to “Meeting Booked” or “Soft Commit”.
- Typical Cheque: This helps you estimate how many conversations are needed to close your round.
- Contact Details: Use this to provide updates on the round.
- Source: Note where the lead came from (e.g., Cold Outbound, Friends & Family).
- Notes: Keep it simple. Note any feedback or possible introduction points.
How do I write an effective investor intro email?
The goal of your intro email is to make it easy for your network to open doors for you. You need a forwardable email with just enough information to pique interest. Here’s a draft example for Airbnb:
- Vision: Book rooms with locals, rather than hotels
- Hard metrics: >10,000 stays facilitated with a GMV of $5m, ARR of $400k (+10% MoM)
- The ask: Raising a Seed of $1.5m
- Social proof: $800k committed + led by Mega Ventures
- Call-to-action: Book a meeting here
Where can I get honest feedback on my pitch?
Before you go to your top-priority investors, it’s better to practise and test your pitch. The goal is to get both feedback and ideally future introductions. Target these groups for friendly feedback:
- Junior VCs: They see a lot of decks and can note down their questions.
- Fellow founders: Ask them to be honest and direct.
- Advisors and tech experts: They work with startups and know what good looks like.
Where do I find angel investors to fill my pipeline?
Building a comprehensive pipeline means using a multi-channel strategy; don’t just rely on one source.
Here are the five key places to find investors:
- Personal Network: This includes friends, family and former colleagues. They want to support you, but be sure they can afford to lose the money.
- Introductions: Unlock doors from fellow founders and existing investors. Ask your existing investors who they can open the door to; they are your best source.
- Clients: Your existing and prospective clients already understand your business. They can be passionate fans investing small amounts, strategic partners, or corporate venture arms.
- Events: Get out there, network, pitch and connect. Look for communities like The Loop: London Startup Events, Rare Founders, Female Founders Rise and SeedLegals.
- Data: Use investor lists and data platforms like Scribe, Crunchbase, or OpenVC. This allows you to find investors active in your space and establish scalable cold outbound campaigns.
Ultimately, preparation saves time, every conversation has value, and you must track every conversation to succeed.