First of all, congratulations! Even if the demand for SaaS is high in the market now more than ever, not every startup is successful in raising funding. You deserve to celebrate and announce your win to the world.
Through that funding round announcement, your customers and prospects will learn that the brand's value has increased, and that they can look forward to more improvements in the product. You'll be able to attract better talent and increase your influence in the industry.
In this article, we'll talk about how you can craft an email to announce your funding round along with examples from SaaS startups that did it right.
How to prepare for your funding round announcement
- Discuss what numbers you'll be disclosing publicly, and what will be kept in private.
- Get consent from the new investors. Ask them if it's okay to announce their name publicly (not everyone wants that).
- If there are several investors, it's important to get the order right. Sometimes, it's important to say who leads the round and mention them first. Other times, you want to make everyone feel equal — then the alphabetic order is the best.
- Recap your mission and the message you want to convey.
- Make sure your messaging is consistent. Refer to your brand guidelines or if you have a brand strategist, consult them for crafting the announcement.
- Write the announcement post/press release article (optional but highly recommended: you'll need a URL to link to on social media).
- Craft the announcement email.
In this article, we'll be focusing on the last part — the announcement emails.
Tips to draft a funding round announcement email for your SaaS company
Structure your announcement
Here are the basic elements you can include in your funding announcement:
- Specify the funding stage and the dollar amount you've raised. The latter is optional. Some companies also mention any previous evaluations listed and total evaluation.
- Mention the investor(s) involved. In case of multiple investors, specify the most popular ones. Pay attention to the order of names.
- Provide a quick elevator pitch of your company and who the product is for.
To make your announcement email more detailed, here are a few more things you can include:
- Paint a clear picture of your company — company purpose, story, mission, and values.
- Explain why the funding was secured and what it will be used for.
- Specify how you differ from your competitors.
As for visuals, you can use the company logo as the banner image. You can also choose not to add visuals if you prefer a conversational look.
Keep it short
It's best to keep your funding announcement email short and to the point. You already might have a press release ready. Make sure you do a shortened version of this for the email.
Focus on the value your company will bring instead of going into the technical aspects of your product.
Also, it's best not to clutter your funding email with other announcements. That being said, it does make sense to talk about other major milestones like a very important feature or rebranding, but make sure to keep it short.
Get quotes from lead investor(s) or founder(s)
A quote from the investor is an expert endorsement. They may refer to the reason for investment and highlight the capabilities of your company and why they found it exciting. This will further validate your announcement.
Craft an appropriate subject line
It's best to keep a straight-to-the-point subject line for funding announcements.
Mention the brand and amount raised, if you decide to reveal it. Include the words "funding," "series," and $ amount in the subject line. You can choose to include any of these or all the above. Here's an example:
DoorLoop raises $20M in Series A Funding
Which email list are funding announcements sent to?
On this matter, Jane Portman, co-founder of Userlist, says:
"Typically, funding announcements are sent to the general email list, which includes both customers and marketing subscribers. The idea is funding increases the perceived value of the company and the product, for existing and potential customers."
Don't forget to send it to your internal email list (employees) as well.
Examples of funding round announcement emails from SaaS startups
Userlist is an email marketing tool for B2B SaaS businesses.
In 2021, we raised our pre-seed round of funding from 21 angel investors. To announce this exciting news, we sent out a minimal letter-like email. We thanked our readers for their support and help.At the end of the email, we linked to the announcement post on our blog where we named the investors and shared why the funding was raised.
Subject line: $45M in new funding to build your dream product management system
Productboard is a suite of software tools for product teams to centralize customer feedback and prioritize what to build.
This funding announcement email stands out from the rest because the copy begins by passionately describing the company's brand vision and how strongly they believe in it. It also mentions the funding amount and names of a few investors. The email concludes by linking to the full announcement.
We also like how the banner image features the two co-founders of the company.
Subject line: [Breaking News] SimilarWeb raises $120M in funding!
SimilarWeb is an analytics intelligence platform that provides digital data for companies to analyze their competitive landscape.
After a personalized greeting, the email announces the amount received in funding and the company's total funding to date. The author of the email also briefly describes the value SimilarWeb brings to its customers and concludes the email by thanking the reader for their support — a standard announcement email.
Subject line: DoorLoop raises $20M in Series A Funding
DoorLoop is a rental property management tool that helps owners manage and grow their portfolios remotely.
Along with announcing their Series A funding, the email goes into detail about how the company has grown over the past years — in terms of customers, countries expanded in, transactions through their platform, and the team.
It also mentions the specific areas where they'll invest the funding.
Thanks to Estelle Barthes of Napta for contributing this example.
Subject line: What we have planned for you 🎉
Napta (formerly PickYourSkills) is a resource management software that helps teams match projects with the right team member.
Unlike most funding announcement emails, the team addresses this email rather than the founders. We also like how the banner image features a team photograph.
Similar to the DoorLoop email, they list down what the funding will enable the company to do. It concludes by thanking clients for their continued support.
Thanks to Alex Kracov of Dock for contributing this example.
Subject line: Exciting news to share
Dock is a SaaS solution for sales and customer success that provides a collaborative workspace for customers and prospects.
Addressed by the CEO, this announcement email has a friendly and conversational tone to it. The author shares his excitement for the funding round and briefly mentions upcoming plans. The full announcement post is linked in the email. In the postscript, they request the reader to help share the word on social.
7. Stark Labs
Subject line: Announcing our $1.5M in funding, billing accounts, and a fresh re-brand!
Stark Labs offers a suite of tools that provide accessibility and collaboration between design and engineering teams.
Along with the funding news, the subject line also mentions new features and rebranding. It's great to include other company milestones along with the funding announcement. However, the email copy only touches on the funding announcement part. They've linked to the full announcement post on their blog, which talks about how the company plans to foster inclusivity in the team along with details of the funding.
What can be improved?
Looks like the team used their typical "new article" process to simply share the announcement post. It would've been better to craft a real email for this special occasion.
Thanks to Adam Howell, founder of Accomplice, for contributing this example.
Accomplice is an AI-powered tool used to generate royalty-free images for different business needs.
This email announces a follow-on seed round funding for Accomplice and also mentions the total amount raised to date. The author includes a quote from the investor which validates the company's mission. They link to the announcement post on their blog where they go into details about the funding and other news.
Brownie points for using an image created using their tool as the banner instead of going for the company logo. That's a nice touch!
What can be improved?
Links to other funded companies are a bit distracting — it's not really mandatory to include third-party links in round announcement emails.
Subject line: Sketch raises $20m in Series A funding plus an official Sketch Data plugin, emotion based user feedback and more!
Sketch is a collaborative digital platform for design teams.
The email announces the funding in their newsletter issue along with other company news. Despite multiple announcements, the email is well-structured and includes only the basic details of the funding. Interested readers can know more from their blog post linked in the email.
What can be improved?
The subject line could have been shorter. With over 100 characters, half of it will not be visible to the user in their inbox.
10. Pepper Content
Subject line: You Helped Us Achieve A New Milestone 🚀
Pepper is a content marketing stack that helps brands create high-quality content at scale.
Pepper's email follows best practices — mentions the investors, expresses gratitude to the reader, and links to the announcement post on their blog. It also has logos of the news media outlets that covered the funding and links to them.
Thanks to Faizan Fahim of Breeze for contributing this example.
Subject line: You made this happen for Scalenut! 🙌
Scalenut is an AI-powered content research and writing tool.
After announcing the funding round, the email explains the brand's vision and the value they bring to customers. We like how the email mentions specific details of the company's growth so far in terms of subscribers, words generated, and the impact customers have had.
Like Pepper's email, they also link to news media pages covering the funding announcement.
What can be improved?
Would be nice to break down the wall of text with images or bullet points.
Key takeaways: how to craft a great funding round announcement email
Thank you for reading! Summing up:
- Include a link to the full announcement post or the press release.
- Visuals are fun but not mandatory. You can use the company logo, or a photograph of the team or founding members.
- Briefly describe the growth of the company. Don't be afraid to mention your competitors and how you differ from them.
- Remember to thank them for their support.
- It's best not to clutter the email with other announcements.
- If you wish to announce other milestones, make sure it's well-structured.
- Remember to use a greeting.
When it's time to announce your funding round, take it as an opportunity to shed light on your success story and express gratitude to all those involved.