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Last Tuesday, the NYU Entrepreneurial Institute hosted the second day of its Max Stenbeck Venture Equity Program, focusing on the critical topic of “Understanding the Process of Fundraising.” The virtual event featured two prominent speakers: Alex Iskold, former Managing Director of Techstars NYC and founder of 2048 Ventures, and Dana Mauriello, a serial entrepreneur with extensive experience in financial technology and small business empowerment.
Fifteen startup teams participated in this insightful session, which provided a comprehensive overview of the fundraising process, from relationship building to closing deals. The Venture Equity Program aims to help NYU founders committed to diversity, equity and inclusion learn the fundamentals of fundraising, to help them assess whether venture funding is a fit for their startup and if so, to equip them with the knowledge and tools to navigate the fundraising process successfully.
Fundraising Fundamentals with Alex Iskold
Alex Iskold kicked off the session by emphasizing the importance of targeting the right investors for early-stage startups. He highlighted the distinctions between angel investors and micro VCs, urging founders to understand these differences when approaching potential backers.
A key takeaway from Iskold’s presentation was the concept of running a structured fundraising process. He advised founders to create a sense of urgency and FOMO (Fear of Missing Out) among investors by setting clear timelines and highlighting multiple ongoing conversations. This strategy, Iskold explained, helps maintain a power dynamic that feels like an equal exchange of value, rather than appearing desperate for funding.
Strategic Fundraising Insights from Dana Mauriello
Dana Mauriello delved into the intricacies of the fundraising timeline, breaking it down into three key phases: the “always on” networking phase, the warm-up phase, and the active pitching phase. She emphasized the importance of considering investor calendars and aiming for a six-month runway when starting the fundraise process.
Mauriello shared valuable insights on building investor relationships, noting that the best introductions often come from entrepreneurs already in an investor’s portfolio or from other investors. She advised founders to research specific partners at firms, identifying those who focus on their sector, and to approach first meetings with a focus on seeking advice rather than immediately asking for money.
One of the most practical tips Mauriello offered was on managing investor communications. She provided a structure for initial emails, emphasizing the need for conciseness and clarity in presenting the company and the specific ask.
Managing Expectations and Adapting Strategies
The session concluded with insights on managing timeline expectations and adapting fundraising strategies. The speakers emphasized the importance of being prepared to explain any shifts in fundraising timelines and framing extensions as strategic choices.
The NYU Venture Equity Program’s Day 2 session provided participants with a wealth of practical knowledge and strategic insights into the fundraising process. By combining the expertise of seasoned entrepreneurs and investors like Alex Iskold and Dana Mauriello, the program offered a comprehensive guide to navigating the complex world of startup fundraising. As these fifteen teams move forward in their entrepreneurial journeys, the lessons learned from this session will undoubtedly prove invaluable in their quest for growth and success.
Honoring Max Stenbeck's Legacy
The Max Stenbeck Venture Equity Program honors the life and legacy of entrepreneur and philanthropist Max Stenbeck. Max Stenbeck was a passionate believer in technology for good, as well as an advocate for equal opportunities and for the rights of vulnerable children. The Max Stenbeck Charitable Fund will continue to give back in his legacy, including through the generous support of the Max Stenbeck Venture Equity Program at NYU.
