What's Below in Issue #51:

📰 - Why warm introductions are important and how Thunder helps

🎙️ - Thunder Premium Demo

📊 - Data behind the drop in non-traditional venture investors

🆓- Free startup resources

💵- Premium startup resources

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Master the Warm Intro Using Thunder

How many emails have you sent to investors? If that answer has more than three zeros, then you are probably approaching fundraising the wrong way.

The two main problems with the “spray and pray” method are that (1) the emails are not personal and (2) there is no connection to separate them from the rest. The best method is to find a warm introduction to the investor since it will help separate your pitch and create a personal connection before even meeting them.

VCs see fundraising as a “mini-trial” for what will happen when your startup scales and challenges become even more difficult. The way a founder conducts themselves during this process sets a powerful precedent for how they will tackle sales, growth, hiring, and many other critical aspects of scaling.

At Thunder, we have built a system to help make this tedious process much easier.

The main reasons VCs want a warm introduction are:

1. Leverage your network. If a founder cannot reach investors through their contacts, then they have a very weak network, or they are unable to leverage the people they know. In either case, it will be extremely difficult to scale their startup since hiring talent, raising the next round, and generating sale leads all require the ability the leverage a strong network. Founders who are reaching out with cold emails set the stage for being unable to do any of the important parts of scaling well.
2. Harder to trust. When a founder is introduced through a warm introduction, the investor has a level of trust based on the contact that created the introduction. If it is another investor that they admire, they can trust that the startup will have a minimum level of quality. If it is a founder they know well who made the introduction, they can often assume that the introduced founder is a decent operator. Most people will not waste a contact’s time and jeopardize their relationship by introducing a startup that is non-venture-backable. Having a warm introduction brings a level of trust and initial screening to the table.
3. Others believe in you. Cold emails send a desperate message that “no other VC I know will invest and I am looking for anyone willing to read this email to respond.” It does not reflect well on founders. VC investors don’t like to be the only people believing in a company – they need others to feel the same way. Most VC investments are syndicates of multiple VCs that are convinced of the startup’s mission. If you send a cold email, the investor will likely ignore it since they don’t want to work with a startup that will be the only one believing in the idea. Having a warm introduction shows that at least one other person liked the idea enough to make the introduction.

Now that I’ve convinced you to chase the warm intro, the hard part is finding someone to help you. I won’t sugarcoat this - it is hard. However, Thunder is here to help make this process much easier.

1. Know who you want to target. Trying to reach every VC on Earth will be impossible and useless for your raise. Most will not be investing in your sector, stage, geography, etc. It is difficult to scrape through databases to find the funds that are likely to invest in you. Thankfully, Thunder has an AI/ML platform that will match your startup based on where it is with the most likely investors. Focus on them!
2. Find the people who know them. Contrary to what you may think, an introduction from another investor is NOT the best type of warm introduction. The reason is that investors will only trust those intros if the other investor is also investing. The best introductions are from SUCCESSFUL portfolio companies. VCs look at their most successful founders as experts in knowing how to run a good startup (even if they won’t admit it) and will be very receptive to an introduction made by those founders. Again, Thunder has built a tool to track the portfolio companies for each of the VCs that you match with. Some simple research will quickly identify which of the portfolio companies are top performing and the best candidates for a warm introduction.
3. Build a relationship. The hardest part is building the relationship with the founders that will help introduce you to the VC. If you have a mutual friend, that makes life much easier. Otherwise, there is a general understanding among founders to help each other in the process. Make sure you communicate directly about your intentions and have material ready for them to present to the VC. However, do not be disappointed if the founder does not share your enthusiasm for your startup and politely declines to make the introduction. Move to the next founder or reconsider what would make your startup more attractive to VCs.

Part of the Thunder platform is that we can provide a warm introduction to VCs as well. Our platform is recognized by many VCs as providing quality deal flow that matches their investment criteria. This intro will be less effective than a quality founder introduction but is still better than a cold email.

Relevant Articles to Getting Warm Intros

• The Art of the Warm Introduction - 👉 Inc.
• How to Smartly Leverage Your Network to Get Warm Investor Intros - 👉 Underscore VC
• How to get warm introductions to investors - 👉 TechCrunch

Thunder Premium will Fast Track the Warm Intros

Thunder Premium Demo
Curious about how Thunder can push you to the fundraising finishing line? Watch Jason Kirby, Managing Director at Thunder, walk you through the platform and the ways that it can fast-track your process.

Data Corner

Less Non-Traditional VC Investors are Staying

According to PitchBook data, there are fewer non-traditional investors in the VC market than last year. This adds to the already tight market since these investors would usually help fill rounds and be a valuable source for introductions.

The stagnant IPO market and drop in valuations have made the VC space less appealing to these investors than in the frothy Covid market.

Free Fundraising Resources

🤓 - Free pitch deck reviews - Submit your deck
💸 - Access working capital fast - Explore options for free
😍 - Free list of AI Recommended VCs - Apply for free
👨‍💻 - Free fundraising coaching session - Schedule 15 minutes with us

Premium Resources

🗓️ - Book a one-hour private capital strategy call - Book Now
💫 - Pitch deck design services for founders by VCs - Decko
💼 - Startup Legal Services - Bowery Legal
📚 - Startup Friendly Accounting Services - Chelsea Capital

Upgrade to Thunder Premium to Unlock: 

1. Access to VC firms' team tabs to see active partners of the fund & their LinkedIn
2. Navigate a VC's portfolio to see relevant portcos or competitors, quickly find their founders on LinkedIn to connect with them, and request warm intros 

   A downloadable CSV with the investor emails & LinkedIn URLs
3. Ability to filter your matches and adjust your profile
4. LiteCRM to track your progress
5. Request intros to VCs directly through the platform
6. Get our fundraising guide on how to increase your odds of getting a meeting
7. Upgrade to lifetime access (one-time fee of $497) and get a free coaching session

Let's stay in touch:

Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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