I often talk Founders say cold emails to prospective investors aren’t that effective. But if you do extensive research and find the right one, they can work.
Many founders skip the research stage.
Michael Bamberger is not that kind of founder.
“I’ve done a lot of cold emails in my career,” says Bamberger, a serial entrepreneur whose results are mostly focused on the intersection of information and research. “I learned a lot about what works and what doesn’t. I built my last career on cold email, basically.
That’s why Tetra Insights, which builds software for user experience teams, was confident about cold distribution when seeking investors for their company.
Tetra has raised $7 million to date, starting with $500,000 from friends and family in 2019 and a $1.5 million seed round in 2020. Michael and his co-founder Panos Rigopoulos raised a $5 million Series A in September 2021 through cold emails. An important role.
When I changed my criteria to find qualified people, the process was very quick. Michael Bamberger, co-founder and CEO, Tetra Insights
Raising capital at an unprecedented time
Since Michael had started two other startups prior to Tetra Insights, he knew he needed to secure a core offering before seeking outside capital. He invested his own money to hire Tetra’s original engineer, who built the company’s MVP. That way, when he met with friends and family to raise money, he had a version of the product to show.
After raising $500,000 from the inner circle, it can start a regular seed round. In the year By early 2020, he knew he was onto something. “We had paying customers. We had users increasing their engagement and really positive feedback,” he said.
But when the Covid-19 pandemic hit, Michael worried that his R&D-focused product would be a tough sell in a tough economy. He stopped thinking about fundraising and focused instead on Tetra Space. However, he soon realized that pausing his search for investors was “completely wrong”. Instead, he took a new approach to fundraising: cold emails.
Michael had a strong network in the startup and venture capital community, but the investors he met often took meetings as a favor to mutual friends, not because they were really interested in the UX research space. “It’s not working fast enough,” he explains, contacting investors through warm introductions. So he changed his strategy, implementing a three-step process that allowed him to identify investors it was Be interested in his startup.
His advice for cold calling?