The answer is a resounding no! This practice of scattershot approach cold email is a vacuous move and definitely not the most effective way to build incipient relationship with investors.
First of all, you do not send a business plan in your initial email to an investor. A short pitch presentation or an executive summary is more appropriate. An investor should be able to swiftly decipher whether there is enough merit to spend more time with you based on the initial information sent.
More importantly, mass emailing investors whom you have no relationship with is an exercise in futility.This is not some cabal handshake to keep outsiders from some sort of big boys club. It is simply good business practise. An effective way investors screen projects is by determining their source and are more amenable to referrals from their trusted network.
Trusted sources tend to bring less problematic referrals. They will not risk their reputation by referring a bad deal. Furthermore, with their knowledge and experience, they help make the deal process more efficient.
Investors get an incessant flow of cold emails, the only way to mollify the situation is by immediately turning down most of these cold emails. Investors have a proclivity of incessantly turning down cold deals and these emails are almost treated with ambivalence. If they do not do this, they will not have time to do other important things.
So, if your fervor to sell and share your business idea suddenly got abated by the paucity of interest or response from investors, perhaps you should attempt a more effective approach by networking your way through them. The comeuppance for not doing your homework is losing the investor as your audience.
Getting your proposal to the investor’s hand is all about networking, networking, and networking. Believe it or not, this antebellum approach of cultivating relationship through networking and referral is the most proficient way to get investors.
Habile entrepreneurs are good networkers. Investors are looking for such; if you can network your way to an investor; it means you have networking ability to find clients in the future. Doing research and building relationships through networking with people who are familiar with the investor is paramount.
To put it quite simply, the best way to get to an investor is through someone they know and trust.
On my next blog, I will talk more about who these trusted sources and network are; and how to network effectively.