Tag Archive for: hypergrowth pr

3 Things Startups Focus On as VC Funding Shifts

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As uncertainty rises, funding falls. At least that’s what the news would have you believe. But according to Inc. magazine, seed and angel deals are still trending upward, and early-stage companies with proven product are still getting most of the deals. In fact, 64% of venture funding is early stage, and seed deals through Q2 of 2022 were on par with the entirety of 2019 (Q2 NVCA/PitchBook). That means for hyper-growth or ambitious companies and challenger brands, there is still an opportunity for you. So what should you do when VC funding is down and inflation is still driving uncertainty? I’ve been through every recession since 9/11 and I’ve been working with ambitious brands and companies since then as well. So I’ve seen what successful businesses do during recessions to position themselves for competitive advantage, survival and growth, despite the economic hurdles. Over the years I’ve noticed, startups who focus on looking ahead while being laser-focused, and tend to survive tumultuous times, regardless of whether your a consumer brand or a B2B company. These are the the things startups focus on for VC Funding.

Focus Your Energies and Budget

“Everything you do, do exceptionally well, and if you aren’t exceptional at it, then get rid of it or outsource it.”

Look at everything you’re doing and cut out the things you aren’t doing well. For example, let’s say your internal biz development team is excellent, but your event marketing isn’t producing the results you’d hoped for, take that event marketing budget and focus it on one thing your biz dev team says they need to get to the next level.

Everything you do, do exceptionally well, and if you aren’t exceptional at it, then get rid of it or outsource it. Outsourcing is just more nimble. What you outsource, be exceptionally clear about your goals, so you can maximize your reduced budget. Focusing your time and budget has the additional advantage of clearing out the cobwebs and giving you new insight into operational efficiencies too. Who knows? You might decide that outsourcing certain strategies, like PR, simply works better than doing it in-house, anyway.

Startups should also focus on the long term. Think about ways you can increase efficiencies with agency partners, and where you can maximize the partners you have on board.

 

Bullish on the Future

“Deals are still happening, but they’re more happening on industries and trends which are moving ahead full steam, no matter what happens to the economy,”

What should a startup focus on when thinking about funding? No matter what happens to the economy, innovation rolls forward, and VCs know this. The money isn’t on solving today’s problems, it’s on solving tomorrow’s problems. According to Pitchbook, in Q1 of 2022, VC’s raised more money than in the entirety of 2019. So are coming down? Oh, absolutely, but VC’s know – the future is now.

Even when funding is down, deals are still happening, but they’re more happening on industries and trends which are moving ahead full steam. So do your homework on where your product fits into the biggest challenges or opportunities in the next 5, 10, 15 years. Look at all the challenges the pandemic brought to light – those challenges are still top of mind, and the companies solving those problems will have a head start. Your corporate storytelling should also lean into the future and purpose driven initiatives. These two aspects will allow you to lead against your peers.

FinTech is another area where the gloom and doom may be over-reported – through Q2, FinTech funding was still more than in 2019, but it’s definitely not as frothy as 2021. FinTech founders may wish to focus on thought leadership and tie it into purpose-driven points of view in order to tap into future trends.

And although the cannabis industry has been experiencing its share of disruptions as of late, no one thinks that industry is disappearing, the growth is only projected to increase as more states move to legalize cannabis, and states create interstate sales as California has, and many expect the east coast to do. Experts predict the cannabis industry will be $100 billion by the end of the decade. You can learn a lot about the future of cannabis by reviewing the pitch decks from startups that recently secured funding.

CleanTech is another area of hypergrowth, spurred in part by the Inflation Reduction Act which incentivizes green technology businesses. Experts predict growth in this segment for years to come. But VCs have been burned in this area, so it’s vital that companies raising funds in this segment double down on trust.

PR for AI companies is another area likely to continue growing. While the initial buzz that spiked with the launch of ChatGPT has settled, investors still haven’t settled on the market leaders in this segment. If you’re an AI company, PR is best asset right now, especially if you’re a B2B AI company.

There are always areas of growing investments, and if you’re in one of them, strike while the iron is hot.

Plan For Success

“Companies that survive this time focus… on problem-solving,”

Now is the time to think out loud and do your due diligence for tomorrow. Companies that survive this time focus their operations team on problem-solving. For example, if  VC funding doesn’t seem likely for you right now, turn your attention to policy initiatives at the federal and local levels. For example, the last infrastructure project had a lot of opportunities for climate-related startups. And the 2021 infrastructure package held lots of tidbits for infrastructure tech programs, that emerging industries like drones and UOV could take advantage of.

Consumer tech VC funding has taken a sharp nose-dive. Storytelling PR campaigns may not be as attractive as they once were for consumer tech. Now is the time to look at product-based programs which increase awareness but not the budget.

Mental health is still top of mind; that’s part of the reason emerging industries like healthtech, cannabis, and psychedelic treatments remain in the sights of investors. But these industries are not without their challenges and competitors. So brands in these emerging industries need to double down on trust to build more acceptance for the communities they serve.

Direct to Consumer (DTC) funding has radically pulled back because simply having a DTC company isn’t enough to attract investment – today, a DTC strategy is an expectation. But startups can take this time to develop something that can’t easily be replicated, like technology. Or, as investor Caitlin Strandberg said, don’t even ask for investment unless you have an Amazon strategy, because social media isn’t where they see buyers, “if you’re going to be where people buy—people are buying more and more on Amazon—you can expect they’ll search your brand name on Amazon, and you want to be on that search page,” so be looking your sales channels along with SEO and digital PR so your startup is poised for growth.

One of the best ways to stay focused on success is to lay the groundwork for a successful IPO. There is a lot to do, both internally and externally, and getting started earlier will save you money and time as the exit gets closer.

You should take this opportunity to do some scenario planning as well. Now is a great time to plan for a crisis, and create plans for things like cyber breaches ,which will help you secure your future.

 

Tomorrow’s greatest companies and emerging industries aren’t going to allow this uncertainty to derail them. This is where the rubber meets the road, and strategy makes a difference.

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Can Growth Marketing and Public Relations Work Together?

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Can growth marketing and public relations work together. Growth marketing is about customer acquisition and retention, often through paid media, with relentless iterations and deeply engaged knowledge of the consumer. Public relations is reputation management of a company’s image, often through earned media and deep understanding of broader cultural and media trends. So what do they have in common? On the surface, not much, but when you dig deeper into the tactics and the metrics, we can see where together growth marketing and public relations can work together successfully.

Suppose the business objective for a consumer product launch is to increase sales through decreasing competitors’ market share. In that case, a digitally savvy PR agency knows how to do competitive research of the entire digital landscape and media landscape and use that data to determine the opportunities to overtake a competitor, while a growth marketer is reviewing how the company attracts customers and retains customers. But where do growth marketing and public relations work together?

Data Driven KPIs

Today’s modern PR firms and PR campaigns should be tied to business goals and identified public relations metrics that support and funnel up into that goal.  While growth marketers are developing ads, PR agencies are developing ways to capture the target audience’s imagination. PR agencies may present a word-of-mouth activation or a targeted quality over-quantity earned media campaign that overlaps targeted audiences. A PR agency might also recommend content which can boost SEO and support brand values that interest and retain customers.  Just like a growth marketer, a modern PR agency is tracking metrics. What metrics might a PR agency track in the above scenario?

  • Mention Quality
  • Article Reach
  • Brand Placement in Article
  • Share of Voice
  • Domain Authority

All of the above PR metrics are measures of awareness and credibility. These metrics support top-of-funnel AND bottom-of-funnel customer journeys and can support growth marketing efforts with a keen eye on target audiences and messaging which supports growth marketing.

The Digital PR Toolkit

For growth marketers, the digital tool kit is primarily paid (but not exclusively); for growth marketing PR, the digital tool kit is primarily owned (but not solely). But there are a few areas where growth marketing and growth PR connect. One of those is SEO. For the growth marketer, SEO provides opportunities for retargeting and organic acquisition, growth marketing PR adds value to both. With a savvy eye on keywords and quality inbound links, PR supports growth marketing objectives to funnel into business objectives.

That’s not all; PR agencies working with media outlets to build revenue opportunities can help growth marketing with a high domain authority on inbound links as well as excellent reviews from credible media outlets, which send potential new customers searching for the product. These reviews could be in gift guides or hero reviews where the consumer product receives an in-depth study that meets Google’s product review update recommendations. Meanwhile, growth marketers will typically focus on reviews from influencers or existing customers. And a brand with positive customer reviews gives a journalist further confidence in a brand and a product.

Today, PR and growth marketing can use some of the same tools, they use them slightly differently:

  • Inbound Links
  • Owned Media
  • Credible Review Acquisition

Credibility: Where PR Fills The Gap

I often tell our clients PR creates the awareness and solidifies reputation; ads are the conversion driver – that’s how they work together, and they both work better. Why? It’s simple: earned media from credible media outlets is more trusted than paid ads. But few journalists look at it as their job to write conversion-focused marketing copy. The journalist’s job is traditionally to create the content that keeps you on the pages. From a longer tail and more strategic point of view – PR also builds brand credibility on the corporate level, trusted brands have faster aquisition and they have longer customer retention, meaning growth marketing is even more influential.

So when someone sees a great review of a product, and THEN they see the ad, they get the trigger to purchase the product, or maybe they sign up for a newsletter, or maybe the look for more reviews and do a Google search that lands them on another referral site. The pathways are endless, but they all come back to one thing: supporting the brand’s business goal.

I’m a fan of understanding and maximizing the media environment for our clients. The Avaans Media client is ambitious and goal driven, so understanding how our jobs support overall marketing strategies and business goals is essential. When we evaluate the landscape for our clients, we find a distinct point of view, and because our tools are different than growth marketers, we can glean insights and data that drive new insights. To be honest, I’m not concerned with being a purist about owned, earned, and paid. It’s the job of a digitally savvy PR agency to know what levers to pull when and how to shape campaigns that create success. That’s our job – and that’s why growth marketers and public relations can be best buddies.

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