How One Company Opened Their Books As A Way To Court Venture Capitalists
By sharing its business intelligence dashboard with select VC partners upfront, Fab.com selected the best partners possible and ultimately raised $40MM over the holidays.
A recent blog post by Jason Goldberg, CEO of Fab.com, offered some thought-provoking insights into how the company raised $40 million to fuel its growth. According to Goldberg:
As our “one thing” at Fab.com is design, I put a lot of thought and consideration into how we might design our fundraising process differently from the norm, so as to optimize around time spent fundraising vs. running the business, and to quickly hone in on who we wanted to marry.
In short, rather than go through the time-consuming process of ‘dating’ VCs — demonstrating the company’s vision and leadership at first, the numbers only at the end — Goldberg and his team decided to accelerate the process by first focusing on the right ‘marriage’ partner, and not on the quantity of dates. In order to allow his team to focus on the business during a demanding, critical time for revenue generation (holiday sales), Goldberg and his team first identified the three key criteria that would qualify the right firms to partner with. This criteria included venture growth capital, a recent track record of picking winners, and scalability.