By the end of April, Merritt had presented to OpenView’s investment committee and, a week later, the firm responded with a term sheet. In a little more than a month, the firm had gone from an outlier candidate to one of Merritt’s finalists, joining several respected firms known for their previous high-profile investments in companies such as LinkedIn, Skype, and Pinterest.
After some back and forth, Socrata and OpenView signed the term sheet in the middle of May. The next step in the process was diligence — a procedure that Pelletier says rarely requires more than 30 days to complete because OpenView’s team performs much of the necessary prep work (e.g., talking to a company’s customers, acquiring financial data, etc.) before a term sheet is ever presented.
That diligence process was going smoothly until, less than a week away from Socrata’s scheduled Series B close date, Pelletier’s wife went into labor. And yet, even that didn’t prevent OpenView — and, more specifically, Pelletier — from delivering on the promise to stick to Socrata’s strict timeline.
“Ricky literally drafted a substantial investment committee update from the hospital waiting room,” explained Merritt. Less than a week later, and just 90 days after Pelletier and Merritt first spoke on the phone, OpenView funded and closed the $18 million investment in Socrata.
For Merritt, Pelletier’s commitment under unique circumstances epitomized OpenView’s fundraising approach. It was well organized, efficient, timely, and detail-oriented — and, most importantly, it followed through on each of the commitments Pelletier had made on day one. Additionally, it showed Merritt that OpenView would help him meet his commitments, including his promise to Socrata employees that he would get the round closed by mid-June so the company could refocus 100 percent of its attention on growing the business. For Pelletier, this investment approach is just part and parcel of working with high-growth companies like Socrata.
“When we have conviction around a team, company, or specific opportunity, we’ll run through walls to make it happen,” Pelletier says. “We got into Socrata’s process a little later than I think we — and they — would have liked, but we played catch-up quickly and delivered on what we promised.”