How to Run a Successful Fundraising Process
Our Workshop Series came to NYC last week for a conversation with Bain Capital Ventures Partner, Merritt Hummer, on running a successful fundraising process. We received such a strong response from our community when we announced this workshop, so it was no surprise that we packed the house at the Bain Capital Ventures office, our gracious hosts for the event. We’re sharing some of the nuggets of wisdom from Merritt below.
- Facts don’t matter…
…nearly as much as you’d think they would! Particularly in the Seed and Series A arenas, investors are investing in the founder and the story. In fact, it’s quite normal to be pre-product and pre-revenue at this stage. Focus less on the facts and more on pitching yourself and pitching your business.
2. Sell a big vision
If you can’t lean on the facts, what can you lean on? Merritt urges founders to be powerful storytellers. Show prospective investors how big your company can be. Really expand the boundaries of how you frame your business. How is your company going to fundamentally transform your space?
3. Brush up on your game theory
We all know that there’s a lot of strategy involved in fundraising, so how do you play to win? For starters, make your fundraising expectations and timeline clear. Set your amount and your end date, and don’t be afraid to be a little pushy. A dash of urgency never hurt anybody!
4. Generate buzz
Have you raised a portion of your round already? Gotten interest from a big firm? Are you in due diligence already with an angel investor? Be your own PR for any successes you’ve had so far in your round. Nobody wants to be the first person to invest, so trumpet those smaller wins around!
5. Don’t give your numbers a haircut
What we mean is: Everyone else will trim your financial projections down, so don’t trim your own! Merritt’s advice? “Think about what a true upside case looks like for your business. How big could it be in a few years if it really works and you’re hitting on all cylinders? That’s the case you should include in your fundraising deck.”
We want to give a huge thank-you to Merritt Hummer, Partner at Bain Capital Ventures, and everyone at the Bain Capital Ventures office for hosting such an insightful and informative workshop for our Jane VC community!
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This workshop series would not be possible without the support of our wonderful partners:
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