Tag Archive for: startup pr

How PR Helps Secure Investors

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If you’re raising an investment round, you may have considered PR. Whether someone suggested it to you or you’re PR curious, you’ve probably wondered why PR comes up so often when you’re seeking investment. From your Series A and beyond, a good reputation helps you raise more money faster. PR helps you attract investors, provides ongoing confidence to investors, and helps the company’s valuation. These are the reasons investors like to see companies use some investment funds for marketing and PR. They know you can run a profitable business without PR, but you can’t be the market leader without PR. So, when should a startup hire a PR firm?  We work with a lot of companies either seeking acquisition or raising funds. Let’s dig deeper into how PR helps secure investors.

First Step: Segment Awareness

Many companies discount B2B or industry PR because industry publications don’t have the public cache of larger business publications like Bloomberg or the Wall Street Journal.

But that’s a mistake. Industry PR is one of the most underrated PR assets when looking for investors. Investors often circle an emerging industry sector, like healthtech or cleantech or cannabis,  to find opportunities, and vertical publications are a great resource. Let’s face it – your startup will not be a unicorn until you’re a segment leader. This type of PR might include thought leadership or owned content campaigns. If your company does not have many search results, industry PR is a natural first step.

There’s another reason to start there: it’s excellent practice. Having 10-15 interviews under your belt really makes a huge difference when you DO get an interview with a national publication. And these credible pieces show investors you’re ready for a capital raise.

Use Data and Insights for VC Funding

A key trend in securing media is providing data to journalists. Journalists are more constrained than ever before. Third-party, statistically relevant data is the crown jewel for consumer business publications like Fortune and Bloomberg. But if you don’t have that kind of research, especially if you’re a SaaS company use the data at your disposal. I don’t mean customer data, I mean information like trends that your product is seeing.

The media isn’t the only stakeholder group that loves data: VCs do, too. Having this data really gives you many ways to capture VC attention, drive and lead conversations, and earn trust from stakeholders. And the best part? You can keep some of this data private and in your pitch deck, which you can use in your funding pitches.

Build Today for Tomorrow’s Funding

Less than 1% of companies appear in the Wall Street Journal or Forbes. Earned media is valuable because it’s difficult to secure, and the credibility factor is greater than anything you can buy. But quality PR is a marathon, not a sprint, and the investment in PR becomes more valuable over time because the more press you secure, the more likely you are to be seen as credible.

Sometimes, companies who are raising funds come to us to help them close a deal. They say, “If I could get a few pieces of press next week, that would be great.” While we might assist you with some sponsored content or contributed content, that’s still an incredibly tight turnaround for us, in part because we don’t know your brand, your voice, and your leadership. And unless you’re already in the news cycle, it’s even less likely a company will secure earned media in that time frame.

PR for investors takes time. PR is branding to journalists. Here’s a typical situation: our groundwork pays off when a newsjacking opportunity presents itself, and journalists trust our client because we had been building that trust for three months already. After that, the company became a credible source for relevant topics for some of the world’s biggest media outlets.

Remember, credibility is not something you turn on and off; it’s something you nurture and guide. That’s PR, and that’s why it’s so valuable when you’re raising capital.

Added Bonus: Crisis PR Preparation

When you’re in the middle of a raise, that’s the last time to scramble for crisis PR. Should you have a crisis, whether that’s a product recall or something more complicated, when you’re raising money or pre-IPO, PR can be the difference between simply surviving and thriving after a crisis.

Crisis campaigns start at $20,000, and that’s after you find a PR firm while your crisis is spinning out of control. When you have a PR firm on retainer, the crisis will still be expensive, but your management of it will be swifter, more strategic, and more effective. With the help of a good PR firm, you can steer your way through the crisis and out the other side with confidence and your brand intact. You might even get bonus points from investors for handling the crisis well.

Taking care of your reputation always pays dividends. When the timing is right to raise capital, that’s a great time to hire a PR agency. A good reputation will help you raise more money, faster.

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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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