Seeds of success: Why raising capital in Massachusetts is a Smart Move

Mass Fintech Hub is committed to helping investors and entrepreneurs achieve their funding goals through initiatives such as our Angel Investment Education program which specifically nurtures key connections as well as provides critical education. By helping each other grow and scale, we can realize our vision of making Massachusetts the #1 global FinTech Hub.

While venture capital funding has experienced a global dip in recent years - funding for Boston fintech startups has been increasing. An impressive $656 million was raised in 2024, a notable increase from the $566 million raised the previous year according to Blue Dun’s annual fundraising analysis. It appears that despite macroeconomic challenges and uncertainty, the Commonwealth’s fintech scene remains stronger than other regions and poised for future growth. 

We tapped leading fintechs and venture capitalists from Mass Fintech Hub’s community to garner their advice on raising capital successfully, and why the Bay State is the prime location in which to do so. 

Pitch Perfect

Daniel Acheampong, Co-Founder and General Partner at the pre-seed venture capital firm Visible Hands, echoes the sentiment that 2024 was challenging for securing startup investments nationally. To that end, he recommends that entrepreneurs come extremely well-prepared. According to Acheampong, one must have a compelling narrative and “clearly articulate the problem you're solving, your unique solution, the value proposition, and the market opportunity. It’s imperative to understand customer needs through deep primary research and support your story with solid data such as customer or user growth, revenue, or relevant data to show meaningful progress.”

He also advises to persevere through rejections as “fundraising is a marathon, not a sprint.”  He tells entrepreneurs that “you'll encounter numerous rejections so use constructive feedback to refine your approach, but keep your resolve strong and continue pushing forward.”

Timing is Everything 

Stéphanie Joseph, Co-Founder of the cross-border payments startup Kura, says, “The optimal times to fundraise are typically in the spring and fall, as investors are more active and accessible during these periods.”

It’s worth remembering that raising capital doesn’t happen overnight. “Carta data shows that the median time for founders to complete a seed round is approximately 23 months,” she explains. “Ultimately, founders should plan for these timelines and align their fundraising efforts with periods of high investor activity.”

Ari Fine Glantz, Executive Director of the New England Venture Capital Association (NEVCA) emphasizes the need to do your homework. Become as well-versed as possible in the factors influencing investor perspective. Before you start knocking on a fund’s door, be able to answer questions like “Where is the existing portfolio doing? Have there been recent successes (or failures) that are likely to influence that firm's outlook on a specific industry/market/approach?”.

Networking is Everything

Glantz also underscores the importance of nurturing your network. He points out that “as available capital shrinks, strength of relationships increase in importance.” He notes, “The difficulty in reaching investors has changed, as has the bar for investment, but the fundamentals of a pitch have not.” 

Acheampong echoes the sentiment, adding, “Expand your network: Start building relationships early. Investors and customers can emerge from the most unexpected places, so seize every opportunity to grow your network.”

Commonwealth Capital

Kura’s Joseph says, “The Bay State's uniqueness lies in the size and accessibility of its startup ecosystem. Unlike larger, more dispersed ecosystems, Massachusetts offers founders the chance to build meaningful, personal relationships with investors. This tight-knit community fosters collaboration and makes it easier for founders to connect with the right partners.”

Entrepreneurial events including Boston Fintech Week and Startup Week offer great opportunities for networking and exposure, she says, while organizations such as Scroobious and Mass Fintech Hub act as catalysts for startup success. “Scroobious works closely with early-stage founders to refine their pitches and develop strategic approaches to targeting the right investors,” she explains. “Similarly, Mass Fintech Hub connects fintech startups with industry resources, mentorship, and capital opportunities.”  

Becoming an Angel

Acheampong of Visible Hands says, “Successful angel investors are those who remain inherently curious and committed to understanding the problems entrepreneurs are solving. They engage deeply, much like investigative journalists, by asking probing questions and seeking data that supports the viability of the proposed solutions.” He advises, “Look for clarity and capability: A clear, well-researched problem statement, a data-driven solution, a thoughtful plan, and a capable team are essential factors.”

Arguably the most important characteristic of an angel investor, the NEVCA’s Glantz says, is risk tolerance. “Angels invest with the least amount of information and often the lowest preference on the cap table. Angel investments are not where you put the money you need to grow,” he explains. “Beyond that, most angels invest in their own area of expertise, and into companies where they can make a difference.”

Learning More and Connecting via the Hub

As highlighted above, networking, connections and advice are keys to capital success and all of those are at the heart of what Mass Fintech Hub provides. The Hub’s Angel Investment Education program offers virtual education, in-person meetups and a lively and supportive online community. If you’re interested in learning more like the insights above, get involved here. Sign up for our newsletter and learn more about becoming a member here. Lastly, to keep in the loop about all our happenings, follow us on LinkedIn and X.