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Individual venture capital firms receive more than 1,000 proposals annually and are primarily interested in businesses that require an investment of at least $250,000, as mentioned on Embroker. However, according to the same source, only 1% of startups turn out to be the next Uber, Airbnb, Slack or Stripe companies. This is why it is difficult to attract the attention of enterprising investors. But PR can greatly increase your chances of getting funded, and here’s how.
Public relations help you show off your experiences
Starting a startup does not make you an expert in your field. If no one knows about your experience, investors may see you as an outsider. You invest in PR, you invest in building your own set of public opinions, mentions and columns at important niches in the startup scene.
Being a guest on a podcast talking about the future of your industry, writing an opinion column or giving a quote on product innovation will help you build your credibility. Publications do not publish articles from authors who have nothing to say to their readers, nor do journalists ask for quotes from random people.
Every word you say in the press is your opportunity for investors to get noticed, to be seen as an expert who explores bold innovations and has the knowledge and courage to create a fast growing and successful company.
When an investor starts FOMO, PR is gold
While you still have to work on your concept, business plan, MVP, and risk management, PR should be the “other important thing” if you’re looking for money. Every FOMO investor misses the chance to catch another rhino. Venture investors are constantly looking for the best deals – they open TechCrunch, VentureBeat and Crunchbase every morning to find another potential multi-billion dollar company.
This is why you should create hype around your startup with PR:
Get articles about your startup published in publications
Work on different formats to reveal the best angles of your work (eg articles, mentions, interviews, or comments)
Focus on the problems your startup solves and why the world needs it
Make it a big deal, and offer bold phrases and exciting quotes to make a fuss about your company.
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PR sells you and sells your vision to investors
There is no doubt that your early startup data contributes to investor decisions. However, at the beginning of your startup journey, you are selling yourself and your vision and not the product yet. Therefore, you have to make sure that you are telling your story correctly, and write your name in the correct posts. Remember that PR isn’t all press releases and interviews. Secure placements in online media, but take advantage of more innovative opportunities as well, such as:
Appears in the Clubhouse where game-changers hang out in your field
Reddit ‘Ask Me Anything’ sessions where you can participate as an expert and authority on a topic important in your field
Product Hunt launch campaigns
Twitter and LinkedIn conversations, where you can create buzz around your personality as an expert
Alexa Flash Briefings
Public relations help you stand out
Competition is fierce for venture capital, and budgets are tight. You may have an innovative and highly requested service or product for your potential customers. But if investors have never heard of you, it can be nearly impossible to prove that your startup is worth investing in, especially if your market is already crowded. What are your odds of success?
This is another reason to get active in the press and on social media to get paid. Seeing you in every major tech post and on social platforms is a form of proving that you are worth their money and time.
Distinguish your brand and yourself from other startups with strong PR looks and get the money you need for your business faster.
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Public relations add value to your company
PR helps you and your business become known for all the great things that you and your team do. It increases visibility and raises your company profile – everyone wants to use the company’s main products and services that have a good reputation. Involving your customers in case studies can build trust and positive behavior towards your brand. PR drives demand among your clients and helps you build strong relationships with enterprising investors. Therefore, it attracts investments and drives your business towards new goals, metrics, and success.
Related Topics: Is Your Brand Ready for PR and Journalism?