How to measure investor engagement during outreach for a startup fundraising process?
Tracking investor engagement during the fundraising process is extremely important for startups that are serious about raising capital and bringing in powerful new investor partners.
If you want to be more confident, precise, efficient, and effective in fundraising for your startup then it is just common sense to be tracking and measuring this key metric. Unfortunately, many do not. Hence long fundraising campaigns and underperformance.
Remember that this isn’t a one-off event. You’ll go on to keep raising or at least be engaging with investors or potential acquirers of your company in other ways too.
So, the sooner you start tracking, the sooner you’ll see the results, and the more rewards you will realize from the compounding benefits of doing it.
What Gets Measured Gets Improved
If you are not measuring something you not only cannot intelligently determine how to improve it. You don’t even know whether you are already doing well or poorly. You certainly cannot effectively or efficiently make positive adjustments.
There are plenty of data points available for startup founders who want to intelligently track their investor engagement and fundraising performance, and do better at it. There is an art to the sale and pitching.
Yet, there is even more science to it. The data that will help you nail raising money this round, do it quickly, and have more investor choices is already there. You just have to look at it and extract the actionable insights it offers.
Here are just some of the many metrics that relate to investor engagement that you may wish to track. They’re valuable first steps when learning how to measure investor engagement during outreach.
Fundraising is a numbers game. Like any form of sales, it often comes down to pushing out enough attempts to contact prospects to get the desired level of yeses and dollars in the bank.
In order to be sure you are on the right track and to have an even better campaign and expectations for your next fundraising round, you should start by tracking how many gross outbound contacts you are attempting.
You may further segment this by medium to see which has been fully leveraged and ultimately which is proving most fruitful or has the best conversion rates.
This may include outbound contact attempts made by:
- Voice call
- Text message
- Broadcast to a mobile phone (ringless voicemail or bulk SMS)
- Social media DMs
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
According to a KPMG and SPAG study startup investors have found their investments most often from their peers (36% of the time). This is followed by industry bodies at 27%, and referrals at 18%. Though all of these typically involve some type of referral.
According to these numbers, 81% of startup investments are discovered by some form of referral. The numbers may even be higher than that when you look at pitch events and startup accelerator demo days.
This suggests that more referrals can have one of the most dramatic impacts on your fundraising success. Make sure you are measuring how many investors you are being referred to, and who is doing most of the referring.
Make sure you are taking care of your power referrers, and get more from those who are underperforming.
LinkedIn Profile Views
In the above-mentioned survey, investors said they also found startup investments via LinkedIn about 9% of the time. Searches of your company and co-founders’ LinkedIn profiles are a good sign of inbound interest, as well as your other fundraising and marketing, and PR efforts working.
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