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All I got for Christmas was deal spam
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All I got for Christmas was deal spam

News Desk
News Desk
January 31st, 2023
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The study was designed to test the thesis that early-stage investors were most interested in a startup founder’s background. But for us at Dealflow, the study validated our own thesis that you can have effective email marketing of investment opportunities so long as the email recipients were well targeted.

In the AngelList study, the 4,494 email recipients were all interested in startup investments. They observed an open rate of 48.3%, click rate of 16.45% (opens that clicked “view” on a deal to get more information), conversion rate of 15.1% (views that requested an introduction to the startup), and an investment rate of 2.98% (2.98% of clicks resulted in reported investments). To be clear, these aren’t good statistics – these are great statistics. But to obtain these statistics, you need to start out with a targeted list of recipients who actually want your email. That means no email blasting and for cryin’ out loud… no sleazy list brokers!

Think about the marketing tactics of most deal portals and contrast that to the marketing tactics of Amazon. Portals = emailing every deal regardless of stage, sector, or type, to every person on their distribution list. Amazon = emailing recommendations based on prior purchases or analytics derived from a person’s website activity.

Now combine carpet-bombing email strategies with faulty advertising and what do you get? You get list fatigue, user disengagement, and eventually, mistrust.

As I’ve said before, the same standards of straightforwardness on deal marketing need to apply to the marketing of online deal platforms themselves. If you’re a private placement broker with a website that’s offering securities in reliance on the traditional Rule 506(b) under Reg D, please don’t hold yourself out as helping companies raise money using “crowdfunding.”

It’s sloppy, it’s misleading, and it’s clogging my inbox.

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