Ask For an Investment • Letter Templates and Guide

How to write this letter:

1Explain how you obtained the name of the potential investor.
2Tell about your company or organization.
3Explain that you are looking for investors and why.
4Ask your reader to invest in your company. Present the investment as a benefit to the investor.
5Offer your reader all the current information about your company that you can.
6Ask the prospective investor to meet with you to discuss the details of the investment.

Tips

This is a sales letter. You are not selling a product or a service; you are selling an idea that you hope will make money. Your success will depend on how confident your prospective investor becomes in your company or idea. Be clear, honest, and sincere, and maintain a respectful tone.

Example Letter #1

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I recently talked to my father about expanding a business I am running on the side. Since he knows of several successful businesses that have gotten their start with your financial backing, he gave me your name as a possible investor.

At present, I am selling my home-baked brownies to fine restaurants. These moist, rich chocolate brownies have generated more attention than I ever anticipated. My customers jokingly say that brownie lust is what brings them back. Several are ordering an ever-increasing supply to the point where I cannot keep up with the demand. In addition, a national chain of gourmet coffee houses has approached me to contract with them for their desserts, which would include more than brownies.

I would like to make this a full-time endeavor, but I lack the funds for larger equipment purchases and salaries for two full-time employees. With expansion, the business has great potential. I would like to meet with you to discuss the possibility of your investment in detail. I believe we could both benefit substantially.

Example Letter #2

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I hope you know how much we appreciate you, and how very important your support is to Doe University. Your past contributions continue to assist in increasing the number of academic scholarships and grants-in-aid we can award.

Now we ask you to once again join with us as we launch our ambitious campaign to teach more students, enhance Doe University's educational quality, and expand Doe University's influence. Please evaluate your present circumstances and, if possible, renew your support of this great University.

Our combined participation can, indeed, change the lives of thousands of our youth who seek to use their knowledge to serve their families and communities. We--and they--need you! Please join with us in this historic campaign by sending your gift today.

Example Letter #3

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You have been recommended to me as a strong investor in local businesses. You may recall that we met at the Springfield Chamber of Commerce open house last month. I own "Jane's Place," the restaurant on the corner of Center and Main.

The opportunity has arisen for us to open a second restaurant in Centerville, near the Centerville playhouse. This is a most promising site, but this degree of expansion will necessitate our obtaining capital investment. The original "Jane's Place" is extremely popular with Springfield's young professional population, and I would like to offer you the opportunity to invest in what will almost certainly become Centerville's favorite after-theater gathering place. I expect this new restaurant will not only help to build the downtown area in a very positive way, but will also offer an excellent return on your investment.

I would like to discuss this opportunity with you further. I will be happy to bring you the market research and business plan proposal. I will call you on Friday to set up a meeting, or you can reach me at 555-5555.

Example Letter #4

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Dr. John Doe, the Springfield School District Superintendent, suggested that I write to you. I have taught special education at Springfield elementary school for the past five years. In this time, I have developed a reading program which has enabled 70% of my special education students to improve their reading by two grade levels in a single semester. Other schools in the district have tried the program with similar results, and I now intend to market the program nationally.

Because of your well-known interest in educational technology, I would like to offer you the opportunity to invest in this innovative product. The returns promise to be excellent, both financially and in the knowledge that so many children are being helped. I have enclosed a full description of the program, along with test results of the children who have used it, as compared with a control group.

Would you be interested in meeting with me to discuss this further? I will call early next week to make an appointment.

Example Letter #5

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We have not met previously, but John Doe suggested that you might be interested in my project. My company is planning to develop a retirement community on the shores of Lake Springfield.

Normally, as we develop our real estate holdings, early sales pay for later development, but in this case we need to have the extensive (and costly) central amenities in place before we can proceed with the sale of individual units. We would like to invite you to invest in this timely development. The enclosed prospectus gives a full description of the project, which I am sure you will agree is an appropriate development of an outstanding location.

Could we discuss this over lunch some time next week? I will call you to make arrangements.

Write Your Letter Step-by-Step

1

Explain how you obtained the name of the potential investor.

Example Sentences

Example Phrases

2

Tell about your company or organization.

Example Sentences

We specialize in manufacturing semiconductors used for common household products such as televisions, radios, and computers. We have enhanced the production process so that today 99.7% of all the components reaching our testing laboratories pass inspection. No other corporation has been able to reach this high standard. The Doe Corporation was founded in 1985, during the health consciousness boom. Its founder, John Doe, offered the public health foods and herbs that were, up to that time, available only in very exclusive stores. Now Doe health stores are located in malls all over the nation. Our company manufactures and supplies water softening agents and systems. These products extend the durability and effectiveness of plumbing systems by eliminating mineral deposits and corrosive elements along the pipes. At the Doe Corporation, we are dedicated to producing the highest quality medical supplies on the market. Because we spend years researching and perfecting each of our products, hospitals and clinics across the nation have come to depend on us for many of their supplies. Ten years ago my business partner, John Doe, and I opened our first electronics store. Now, we have five large establishments in the state. We have considered it a privilege to serve the citizens of Springfield. Over the past seven years, we have assisted hundreds of individuals and businesses in achieving and maintaining financial security. The Doe Corporation has been a successful housing development firm for ten years. We design and manufacture homes, condominiums, and apartment complexes. As you can imagine, this has been a very lucrative business. For many years, Doe Oil has been a small contributor to larger companies. Recently, however, we have recognized that the quality of our petroleum products far surpasses the industry standard.

Example Phrases

3

Explain that you are looking for investors and why.

Example Sentences

Because of the superior quality of our semiconductors, and because of the increasing need for our product in the industry, we want to seize the opportunity to expand immediately; however, in order to do so, we need the help of outside investors. The Doe Corporation has reached such popularity that we want to open a new line of products and services, including health fitness centers. The first step in our expansion will be to open a fitness center in the Springfield area. Until now, we have only installed our systems in homes, but our research suggests that the largest market for our products is in large business and industrial buildings. In order to take advantage of this large market, we need additional capital to develop industrial-size components. We propose to revolutionize intravenous catheters and have done much research to this end; however, we are running out of money for this important product, even though there is still a lot of work to be done. Now we must turn to the scientific community to help us fund the research, design, and production of this important new product. Our existing establishments have been so successful that we want to build five more stores. Our research indicates that the proposed locations will be ideal, with little or no competition in the foreseeable future. During this time when every dollar must count, we want to be able to serve even more individuals and businesses. For this reason, we want to establish three more consultation centers in the state. Because we lack the immediate reserves to accomplish this goal, we want to invite business owners in the Springfield area to invest in their own financial futures.

Example Phrases

4

Ask your reader to invest in your company. Present the investment as a benefit to the investor.

Example Sentences

Example Phrases

5

Offer your reader all the current information about your company that you can.

Example Sentences

Example Phrases

6

Ask the prospective investor to meet with you to discuss the details of the investment.

Example Sentences

Example Phrases