An entrepreneur I met yesterday followed up from our meeting by sending me a fundraising email. He was looking to raise $1 million for his business and had one very promising piece of collateral.
It was a letter from an executive at a fortune 500 company promoting the entrepreneur. This letter basically stated the problem the fortune 500 company was facing and that they were ready to invest in the right solution. The letter was written by a senior executive and mentioned the investor’s company name multiple times as the potential provider of the solution.
I thought it was pretty neat that this entrepreneur was able to include a letter of intent from such a company and imagine it will be very helpful in their attempts to raise money.
Up until now, I’ve never seen a letter like this before. Have you? Is it common practice for someone raising money to include a letter of intent from a potential buyer?