The importance of a profile and story in attracting capital
Creating a positive public profile and an engaging story can be the critical difference for scaling businesses, between securing investment to grow and treading water indefinitely while searching for funds.
This is particularly true of businesses that have secured seed funding but are now preparing for their Series A, the first tranche of venture capital money.
At this stage, competition is fierce and investors will carry out thorough due diligence on any potential partner, often starting with an audit of public profile, recent media coverage and social media presence.
They will be looking for third party validation of the investment potential in the form of media articles, which in turn generates trust, credibility and positive reputational credit to mitigate any future risk.
Start up and scaling businesses are often built around one or two key people and a small team; they are stretched and time poor, so PR can easily play second fiddle to other, essential operational duties. Given the level of competition for investment, however, those who prioritise their public profile can rise above rivals.
In particular, a well-orchestrated campaign will build the founder’s profile and ensure it is perfectly aligned with that of the organisation. This gives the business gravitas and credibility, reinforcing market position and giving investors the chance to back the jockey as well as the horse.
Going further, by introducing other executives to the campaign, will show an even greater breadth of expertise, and help to persuade investors that there are layers of credibility; the business’ success is not predicated purely on the founder.
In the preparation of investor packs, a company’s public profile should be front and centre as essential proof points of relevance and credibility.
In order to create maximum impact, however, there should be a carefully co-ordinated strategy behind the story being told, with close attention to purpose, vision and milestones along the way.
Profile pieces with founders and executives can add the human element to why the business was set up, what problem it’s seeking to solve and who it is designed to help. Thought leadership content allows for critical topics to be discussed at length, positions to be taken and questions to be resolved. And news announcements raise awareness of growth milestones such as key hires, partnerships, sales numbers and geographical expansion – all things investors would need to know but once considered newsworthy by a recognised third part media outlet, that adds a new dimension – it proves that people care, lends the business currency and creates urgency and competition amongst investors to get involved now.
It’s important that the campaign grows steadily and doesn’t run out of steam, as investors are looking for sustainable growth. A full plan with content topics, media targets, news announcements, networking opportunities, and social media engagement, therefore, is critical to show longevity. Within those different activities, there should be three or four key messages that communicate a business’ USP, and are repeated consistently, to purvey the sense of consistency, credibility and clarity.
When you consider the approach venture capitalists take to their investments once made, prioritising PR for portfolio companies to increase their value, that validates the same principles for businesses seeking investment.
The key question to start the process is: what’s the story and why are you different? If you can answer that with a compelling, consistent narrative, fed through the different tactics and channels discussed above, you can start a virtuous cycle of attracting both media and investor attention.