Tag Archive for: los angeles startup PR

Effective PR Strategies for Every Startup Stage: Seed to Series C

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Public relations is the art of managing communication between an organization and its various stakeholders, including customers, investors, employees, and the media. In the world of startups, effective PR can be a game-changer. Crafting effective PR strategies for every startup stage requires nuance. It can catapult an unknown venture into the limelight, attract investors, and build customer trust.

PR isn’t a one-size-fits-all strategy. What works for an established corporation won’t necessarily work for a fledgling startup. Each stage of a startup’s development demands a nuanced approach to PR. This article aims to guide you through the steps of startup growth, from seed funding to Series C, offering tailored PR strategies to help you succeed.

Why One-Size-Fits-All PR Doesn’t Work

Startups are like seeds. They require careful nurturing, the right environment, and precise attention to grow into strong, healthy businesses. Just as you wouldn’t water a seedling like a mature tree, you shouldn’t approach PR for a startup the same way you would for an established company.

One-size-fits-all PR strategies often need to be revised; effective PR strategies for every startup phase mean a deep understanding of the hyper-growth process. What works for a fully-funded Series C pre-IPO startup may work for something other than a bootstrapping seed-stage company. By tailoring your PR strategies to your startup’s specific stage, you can maximize your chances of success.

The Seed Stage: Planting the PR Seeds

Defining Your Brand Identity

At the seed stage, PR is the foundation for your startup’s brand identity. Before you launch into the public eye, defining who you are, what you do, and why you matter is crucial. Start by crafting a compelling brand vision that resonates with your target audience. Your PR should convey your product or service and your startup’s values and mission no matter if you need B2B PR or consumer PR. 

Building a Solid Foundation

At the seed stage, your startup is just a kernel of an idea. Establishing a solid PR foundation that can support your growth is essential. Start by recognizing your target audience and understanding their pain points. Your PR efforts should focus on solving these pain points and demonstrating how your startup addresses them.

Crafting a Compelling Startup Story

Storytelling is a powerful PR tool crucial to every startup’s effective PR strategies; especially B2B tech. Craft a compelling narrative highlighting your startup’s mission, vision, and the problem it aims to solve. Make your story relatable and emotionally engaging. Investors and customers are more likely to connect with your startup if they understand its story and purpose.

Building Media Relationships

While you may have little to show in terms of product or revenue, you can begin to build relationships with critical media outlets and influencers. Engage with journalists who cover your industry and share your insights. Establish yourself as a thought leader by contributing guest articles or participating in relevant discussions. Building goodwill in the media world can pay dividends down the line.

Leveraging Crowdfunding Platforms

Many startups at the seed stage turn to crowdfunding platforms like Kickstarter or Indiegogo to raise initial capital. PR is an invaluable tool here. Craft a compelling crowdfunding campaign with a strong narrative, eye-catching visuals, and a persuasive call to action. PR can help you get featured on these platforms, gaining visibility among potential backers.

Leveraging Personal Branding

In the seed stage, your startup is an extension of yourself. Personal branding can help you form credibility and trust. Be the face of your startup, sharing your expertise and insights in your industry. Ensure to engage with your target audience through social media and industry events. Your brand can become a valuable asset in attracting early customers and investors.

Effective Bootstrapping PR

Bootstrapping is common in the seed stage, and PR efforts must be cost-effective. Seek out media opportunities in niche publications and blogs. Engage with local communities and industry forums. Connect with bloggers and journalists who cover your industry and offer expert insights. Every piece of media coverage, no matter how small, can help build your startup’s credibility.

The Early-Stage Sprout: Cultivating Awareness

Product Launch PR

As your startup takes its first steps and launches a product or service, it’s time to ramp up your PR efforts. Craft a compelling product launch strategy that includes media outreach, press releases, and social media campaigns. Engage with tech bloggers and influencers to review and endorse your product.

Industry Events and Networking

Participating in industry events, trade shows, and conferences is an effective way to get noticed. Prepare a strong PR strategy to leverage these opportunities. Reach out to event organizers, offer to speak on panels, and arrange interviews with media outlets covering the event. Networking with potential partners, investors, and customers can also yield PR opportunities.

The Growth Stage: Scaling Your Visibility

Expanding Media Outreach

As your startup gains traction and revenue, expand your media outreach efforts. Develop a comprehensive list of relevant journalists, bloggers, and influencers and regularly engage with them. Provide them with valuable insights, data, and exclusive access to your company’s developments.

Attracting Early Adopters

As your startup grows, focus on attracting early adopters. These customers are eager to try new solutions and provide valuable feedback. Your PR efforts should highlight how your product or service solves their specific problems. Consider offering exclusive access or early-bird discounts to incentivize early adoption.

Thought Leadership

Establishing yourself as a thought leader in your industry is a powerful PR strategy. Publish whitepapers, industry reports, and thought-provoking content that showcases your expertise. Host webinars and podcasts to share your insights with a broader audience.

Securing Strategic Partnerships

At this stage, strategic partnerships can significantly enhance your PR efforts. Collaborate with other companies in your industry to co-create content, host joint events, or offer bundled services. These partnerships can generate buzz and expand your reach.

PR Metrics that Matter

In the growth stage, measuring your PR efforts’ impact is crucial. Focus on metrics aligning with your objectives and goals, such as website traffic, lead generation, and customer acquisition. Use social media insights, Google Analytics, etc., to track your progress. Adjust your PR strategy based on the data to improve your results continuously.

The Series A and Beyond: Attracting Serious Investors

Scaling Your PR Strategy

The Series A funding round marks a notable milestone for your startup. It’s time to scale your PR efforts to match your growing ambitions. Consider hiring a dedicated PR team or working with a PR agency specializing in startups. A larger group can handle the increased demand for media outreach and content creation. Building effective PR strategies for every stage will almost certainly include a seasoned PR agency. A seasoned PR agency understands effective PR strategies for every startup.

Investment Announcements

When you secure significant funding rounds like Series A, B, or C, it’s time to make a splash. Craft compelling investment announcements and press releases. Showcase the growth and potential of your startup. These announcements attract investors and garner media attention, further boosting your credibility.

Investor Relations

Maintaining positive relationships with your investors is crucial for long-term success. Keep them informed about your startup’s progress, achievements, and challenges. Regular updates can lead to positive media coverage and investor referrals.

Crisis Management

As your startup grows, so does the potential for crises. Whether it’s a data breach, product recall, or PR blunder, how you handle these situations can define your brand. Develop a crisis communication plan to address issues swiftly and transparently. Your PR strategy should include crisis management as a vital component.

Expanding Your PR Team

As your startup progresses to Series B and beyond, your PR needs will continue to grow. Consider expanding your PR team to manage the increasing complexity of your communications. Hire experienced professionals who can navigate the challenges of scaling your startup’s PR efforts.

Going Global with PR

If your startup has global ambitions, your PR strategy should align with this expansion. Develop localized PR campaigns to target international markets. Tailor your messaging to resonate with diverse audiences. Establish relationships with global media outlets and influencers to broaden your reach.

Effective PR Strategies for Every Startup: Measuring PR Success

Measuring PR success during all stages involves tracking metrics impacting growth and market penetration directly. Here are key metrics to focus on:

Customer Acquisition Rate

Monitor the rate at which your firm acquires new customers. This metric reflects the effectiveness of your PR efforts in attracting and converting prospects into paying customers.

Conversion Rates

Analyze the percentage of leads generated through PR activities that convert into paying customers. Improving conversion rates is critical for maximizing the ROI of your PR campaigns.

Customer Feedback

Collect and evaluate feedback from early customers acquired through PR efforts. Positive feedback indicates product-market fit, while negative feedback can guide improvements.

Churn Rate

The churn rate measures the percentage of all customers who come to a stop using your product or service. Monitoring and reducing churn is crucial for sustaining growth.

Media Reach

Assess the reach and influence of the media outlets featuring your startup. This metric provides insight into the visibility and credibility your PR efforts are generating.

Website Traffic and SEO

Monitor organic website traffic and search engine rankings. Effective PR should contribute to increased website visits, leading to more conversions and brand recognition.

Social Media Engagement

Analyze social media metrics like likes, shares, comments, and follower growth. Engaging content and PR campaigns should stimulate audience interactions and development.

Lead Generation

Continue tracking leads generated through PR activities. Lead generation is critical as it directly influences customer acquisition and revenue growth.

Content Performance

Assess the performance of PR-related content, such as press releases, blog posts, and guest articles. Track metrics like page views, click-through rates, and shares to gauge content effectiveness.

Influencer Amplification

If you’re collaborating with influencers, measure the reach and impact of these partnerships through audience growth, website traffic, and social media engagement.

Conversions Attributable to PR

Identify the specific conversions (e.g., sign-ups and purchases) directly attributed to your PR efforts. This data helps you understand the ROI of PR campaigns.

Return on Investment (ROI)

Calculate the overall ROI on your PR investments, considering both the costs and the revenue generated from PR activities.

Competitor Benchmarking

Compare your PR metrics to those of key competitors in your industry. This benchmarking helps identify areas where you can outperform or areas that need improvement.

Final Thoughts

In the ever-evolving journey of a startup, effective PR strategies for every startup serve as both a compass and a catalyst. It guides your startup through uncharted waters, ensuring that your message resonates with the right audiences while propelling your growth and success.

One key lesson to remember is that PR is not a one-size-fits-all strategy. Just as you wouldn’t use the same watering can for a seedling and a mature tree, startups must tailor their PR approaches to their specific stage of development. From the seed stage, where you’re planting the PR seeds of your brand identity, to the growth stage, where you’re cultivating awareness and attracting early adopters, and onward to Series A and beyond, where you’re attracting serious investors and scaling your PR strategy — each phase requires a nuanced PR strategy.

Start at the seed stage by defining your brand identity and crafting a compelling startup story. Build a solid foundation, leverage personal branding, and embark on effective bootstrapping PR to get your startup off the ground. As your startup sprouts and enters the growth stage, focus on product launch PR, industry events, and networking to cultivate awareness.

In the growth stage, expand your media outreach, attract early adopters, establish thought leadership, and secure strategic partnerships. Ensure your PR strategy aligns with customer acquisition, social media engagement metrics, and conversion rates to support sustained growth.

As you reach Series A and beyond, scale your PR efforts, make impactful investment announcements, and nurture investor relations. Be prepared to handle crises effectively, and consider expanding your PR team to meet the demands of your growing startup. If you have global ambitions, adapt your PR strategy for international markets.

Measuring PR success by tracking metrics that align with your specific goals and stage is essential throughout your startup journey. Customer acquisition rates, conversion rates, customer feedback, and media reach are just a few key metrics to monitor. Your ability to adapt and refine your PR strategies based on these metrics will be pivotal in achieving sustained success.

In conclusion, PR is the thread that weaves your startup’s narrative into the fabric of the business world. It’s a dynamic and ever-evolving discipline that can make the difference between growth and stagnation when tailored to your startup’s stage. Embrace the power of precise PR strategies, and watch your startup thrive at every stage of its remarkable journey.

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The Future of AI Tech Companies

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AI startup companies have been around for a while, but really began flooding the market in 2023 and are here to stay. The success of this emerging industry can be attributed to their tremendous effect on the present market and their impact on the future.

It wasn’t that long ago that some of our most advanced machines had merely learned to play a simple chess game. However, they have evolved from that and can now process complex data, create predictions based on that analysis, and hold up a conversation.

Yet that isn’t the most surprising part. What is truly remarkable is the impact of AI in every industry worldwide. AI has started seeping into every market niche, from healthcare to education, leading to multiple fast-growing AI companies in 2023.

 

What is the Future of AI Tech Companies?

Do AI tech companies have a future? Can we expect more growth and advancement in the upcoming decade?

The answer is undoubtedly yes. AI is said to be driving the next boom and reinvigorating venture capital after a bleak funding season in 2022.

We are likely heading towards a boom in AI startup companies soon. The evolving artificial intelligence, coupled with increased investment, leads to the development of new applications every day, so the future of AI is fixed on an upwards trajectory. Top AI startups today have begun impacting the market, and even startups that aren’t tech-centered are beginning to lean on AI solutions for increased efficiency.

It won’t be long before there are rounds of record-breaking IPOs for AI companies.

The Ever-Evolving World of Tech

Let’s start by discussing the incorporation of AI in tech-based startups;

Entrepreneurs spend billions every day on AI development. Tech startups are taking this investment to the next level. Generative learning startups have begun creating applications and solutions to sell to more prominent companies and help increase efficiency.

AI today helps new consumer products gain tremendous popularity in less time. They can also analyze the data of visitors on social media platforms or websites and mold their experience accordingly. AI ensures the following user is much more willing to buy the product.

E-commerce and the Race to the Finish

AI and e-commerce have only recently developed a strong relationship. Fast-growing AI companies include multiple e-commerce platforms that are benefiting from this race. Determining them through artificially intelligent data analytics helps them price their products according to customer preferences. One of the questions on the consumer pr expert is, what’s Google’s position on ChatGPT content?

In short, consumers only pay the price they want to pay. Moreover, since these AI tools are based on machine learning, they change according to customer preferences. Ultimately, they lead to more profit.

What AI Means for the Healthcare Industry

The healthcare industry is one of the biggest and fastest-growing industries in the world. Thus, the fact that it has birthed a large percentage of top AI startups today isn’t surprising. The healthcare industry doesn’t just benefit from generative learning startups but also deep learning startups. These AI applications help the healthcare industry get more accurate diagnostics and treatments. It also leads to much better outcomes for patients. Moreover, AI healthcare applications can use patient data to create customized solutions that work!

The Education Route: Onwards and Upwards!

Over the past couple of years, the education niche has witnessed tremendous growth. It isn’t just the introduction of unique applications that have helped students worldwide. College students worldwide benefit from platforms like ChatGPT to learn more about a subject or find solutions to complex equations when they can’t access a teacher.

Generative learning startups in education help educators delegate some problematic tasks to AI. Moreover, AI can also help them analyze student performance and detect when a student is facing difficulties which add efficiency to the process.

5 Fast Growing AI Companies to Watch

1.      ChatGPT

Although it may only sometimes get the best rep in the market, it is truly an excellent tool for students and researchers to get quick answers to queries. ChatGPT by Open AI is designed to answer any question a user asks in a way that a human best understands. History will see ChatGPT as the first app to open the possibilities of AI to the masses – for free! We offer more extensive predictions on the role of content-generating tools like ChatGPT here.

2.      NovaKid

Are you looking for generative learning startups that put education first? Here’s one!

NovaKid is made for educationists looking to teach children linguistics through practice. It doesn’t just offer AI-based games and training and allows students to access native speakers who can help them practice.

3.      Viz

Viz.ai is both a healthtech and an Ai company that has recently become popular in the world of deep learning startups. It allows medical professionals to increase the efficiency and accuracy of their diagnostics and provide a treatment plan accordingly

through stored patient data used by the AI tool to make optimal decisions.

4.      Active

Active.ai has recently been introduced to the fintech world and helps companies converse about finance. Over the past few years, it has offered curated solutions to multiple industries.

5.      Shelf

The Shelf is a similar AI startup allowing AI to match retailers and customers for better solutions improving efficiency for e-commerce and ensuring that consumers get what they are looking for every time.

10 Fast-Growing AI Companies: Startups Shaping the Future of AI

Are you looking for fast-growing AI companies? Startups hoping to shape the future of AI are the ones that need investment the most. Thus, learning about these startups and their ideologies can boost their growth;

1.      SoundHound

SoundHound is the most interesting among the many fast-growing AI companies. The idea was birthed in Santa Clara, California, and founded by James Hom, Keyvan Mohaier, and Majid Emami.

SoundHound is an AI-based startup that allows companies and owners to maintain their brand image from anywhere in the world. They achieve this through voice control.

This startup has also introduced Houndify, the world’s fastest speech recognition and audio search application.

2.      Neatsy

Deep learning startups are often one of the most creative ones out there. Meet Neatsy, a startup company that has recently made a name for itself in the fashion industry. This company hopes to redefine shoe fittings.

Their dreams to develop a 3D foot scanner using an iPhone camera have finally been realized. They have invented an application allowing users to get the perfect shoe fit or present solutions that treat specific conditions.

For Neatsy, looking to the future is of the utmost importance, as there lies a solution to all shoe sizing troubles. It is where everyone is finally going to know their actual shoe size.

3.      Moveworks

Moveworks is located in California, and it was founded by Bhavin Shah, Jiang Chen, Vaibhav Nivargi, and Varun Singh in 2016.

This AI platform has attempted to create applications that support a company’s relationship with staff, invent new ways to help their employees and make working at a particular company easy. It is one of the few deep learning startups that have developed an application that aids employees.

4.      Nektar

Nektar is an AI startup that was founded in Singapore in 2020 by Abhijeet Vijayvergiya and Aravind Ravi-Sulekha. For Nektar, providing businesses with revenue-oriented solutions was the goal.

This B2B startup allowed businesses to access an AI-powered virtual assistant and connect it to a revenue enablement platform. These platforms were then accessed by sales teams, who used them to boost productivity, sales, and growth.

5.      Character

Character.ai lets you close your eyes and slop away to a fantasy world where you speak with one of the greats. It could be Gandalf from Lord of the Rings or Tesla! You don’t need to wonder as long as Character.ai exists.

This startup was founded in California. It is one of the best generative learning startups out there because of its unique ability to incorporate AI chatbots on its platform, which can learn and emulate the styles of various characters.

This generative learning AI uses large language models to feed their AI chatbots just enough so they can emulate these characters as accurately as possible, leading to engaging experiences with customized adventures for all.

6.      Luminance

Luminance has mastered legal processing and document review. Founded in 2015 by the University of Cambridge mathematicians, this AI startup can read and understand a legal document and use generative learning to help perform particular tasks.

In the world of legal documentation, this is a first. Luminance allows for irregularities and non-compliance areas to be notable and eliminated before the procedure is carried forward.

7.      Savvie

Savvie is one of the many Scandinavian generative learning startups that are doing well in the market. It uses AI to learn about consumption and reduce food wastage. Through this, Savvie hopes to reduce overall waste.

This tool has allowed many firms, bakeries, and cafes to access a simple application to streamline production and consumption and reduce food waste.

8.      Veesual

Veesual uses generative and deep learning to take fashion e-commerce to the next level. This platform, founded by Maxime Patte and Damien Meurisse in early 2020, provides online fashion businesses unique solutions through virtual try-on technology.

Veesual allows users to try on clothes virtually through other brands’ existing clothing images. These images are then added to model photos to create combinations. Thus, it is much easier for people to picture themselves in this clothing.

9.      Vicarious

Vicarious has spent many years investing in AI and generative learning. It has led to an AI platform that can solve issues by learning from its surroundings.

Vicarious has led the AI tool to create different kinds of technologies, including a motor control system that encourages the precise movement of robots and a visual control system with in-built spatial recognition.

10.  Anthropic

This AI startup was created by former OpenAI employees who decided to get together and form their own startup. CEO Dario Amodei led this group. They eventually created a chatbot, Claude, who could generate, summarize, and explain content.

One of the admirable things about this chatbot is how customizable it is. It can take up multiple tasks simultaneously and give different solutions depending on the user.

Why Do AI Tech Startups Need Specialized PR?

Specialized PR in AI is of the utmost importance as AI startups need a PR agency that understands their struggles and dreams. Modern PR agencies have been using AI-based PR tools and already understand the vision of AI startups and can thus help them better. Moreover, they can translate their goals and objectives to the audience better.

  • PR for AI startups can assist them with their image and build a positive brand identity that people will want to associate with.
  • AI startups that receive professional PR are much more visible online. They get more organic and paid growth, and more people see them.
  • PR for AI startups can also help you avoid the worst crisis situations, as your PR company will be on your side, handling the communication gap.
  • AI startups that receive professional PR make informed decisions based on market research and insights.
  • Most importantly, these professionals help guide the company through the highs and lows of it all.

Final Thoughts

The future of AI tech companies is bright, and it will be a long time before something else occurs. The rapid introduction of new platforms, such as applications and ways of living life, can lead to a period of growth which is why more and more investors are jumping on the bandwagon.

However, hiring a PR firm for your AI startup is vital to ensure you cover all bases and reach your customers with the right tone. PR firms can also help you avoid crisis situations and build the best brand loyalty.

Contact us today; we’re already AI PR experts. The choice is yours!

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Top 5 PR Strategies for HealthTech Communicators

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In the fast-paced world of HealthTech, effective communication and healthtech PR plays a vital role in shaping the success and reputation of a company. Because it is a fast-growing, emerging industry, Chief Marketing Officers (CMOs) and founders must comprehend the significance of strategic public relations (PR) within their marketing strategy. PR Strategies for healthtech is important to brand message and establishing trustworthiness in the market.

HealthTech communicators need to employ healthcare PR strategies to increase their brand visibility, build trust, and grow. This blog post will discuss the top five strategies they should use.

Develop a Strong Thought Leadership Program

A robust healthtech thought leadership program is essential to establish credibility and position your healthtech company as a leader in the industry.

Identify these critical spokespeople within your organization. These could be executives or subject matter experts. Contributing valuable insights and expertise to industry publications, conferences, and media outlets is a reputational requirement for industry leaders.

Publish well-researched articles regularly. Participate in industry discussions. Speak at conferences. Position your company as a trusted source of knowledge. Gain visibility among industry stakeholders and potential customers.

Leverage Data and Case Studies

In the healthcare sector, data and case studies hold immense value. Especially if your company is in the pre-IPO phase, leveraging data from your products or services can significantly strengthen your PR efforts. Collect and analyze relevant data to identify trends, insights, and success stories that showcase the impact of your healthtech solutions.

Use these findings to create compelling case studies and whitepapers highlighting your technology’s tangible benefits to patients, healthcare providers, and the overall industry. Sharing resources can help generate media interest and show the effectiveness of your offerings. This can be done through press releases, media pitches, and your company’s website.

Establish Partnerships with Key Influencers

For B2C healthtech brands, influencer marketing is a powerful tool to help healthtech companies reach a wider audience and build consumer trust. Identify key influencers in the health and technology sectors who align with your brand values and target audience. Collaborate with these influencers to create engaging content, host webinars or podcasts, or take part in social media campaigns.

A well-known individual’s endorsement and association of your brand can increase your reach and credibility. Their followers will view your healthtech company as a reliable and respected part of the industry.

For B2B healthtech brands, the role of media relations could not be more critical. Establishing a reputation with the media will build your reputation and improve your business outcomes overtime.

Optimize Digital Presence and SEO

In today’s digital age, a strong online presence is crucial for effective PR in the healthtech industry. Ensure your company’s website is visually appealing and optimized for search engines (SEO). Conduct keyword research to identify the terms and phrases your target audience is searching for, and incorporate them strategically into your website’s content.

Create content optimized for different channels, such as social media, blogs, and press releases. Focus on creating content that educates, informs, and inspires potential customers, and leverage the influencers to help spread your message. Additionally, create an email list and use this to send out newsletters, updates on new products, and news related to your HealthTech company.

Utilize SEO tools like Google Analytics and Google AdWords to track and analyze your website’s performance and optimize content accordingly. Publish blogs and articles regularly. Ensure they are high-quality and SEO-optimized.

These pieces should address the pain points of your target audience. Show thought leadership and provide valuable insights. By implementing these strategies, your website will rank higher in search engine results, driving organic traffic and enhancing your brand’s visibility.

Engage with the Media

Engaging with the media is a fundamental healthtech PR strategy for healthtech companies. Establish relationships with journalists, reporters, and editors who cover the healthcare and technology sectors. Invite them to cover your company’s launch, product launches, and other newsworthy events. Offer them interviews with the people behind your company, such as founders, CEOs, and other executives.

Utilize PR networks to reach out to influencers, bloggers, and other key players in the industry. Leverage these contacts to spread the word about your company and products.

Use social media to engage with customers and build relationships with industry partners. Post relevant content, such as tutorials, articles, and industry news, to bring attention to your brand. Share your company’s mission and progress to attract potential investors. These are just a few strategies that you can use to build a successful HealthTech PR strategy.

Regularly share company news, product updates, and industry insights through press releases, media pitches, and media alerts. Offer your executives or subject matter experts for interviews or commentary on relevant industry topics. Engage with the media proactively. This will help you secure media coverage, increase brand visibility, and make your HealthTech company an authoritative voice in the industry.

Conclusion

In the competitive world of healthtech, effective PR strategies are paramount to success. Chief Marketing Executives and founders can improve their brand’s visibility, establish thought leadership, and build trust among their target audience. This can be achieved by implementing the top five strategies outlined in this blog post. By developing a strong thought leadership program, leveraging data and case studies, and establishing authority through PR strategies for healthtech companies.

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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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