Your startup has raised funds; now how do you spread the word?
Well done on raising investments, but what's next? Making investment news go viral can be a powerful way to enhance a company's visibility and attract further interest from customers and investors alike. TechCrunch found that startups with robust media engagement achieve approximately 30% more market traction than their competitors. Stepan Burov, Co-Founder of 8bitPR Agency, will explore strategies to enhance your business profile by leveraging investment announcements.
70% of founders believe media coverage following a funding announcement positively impacts brand awareness and customer perception. In addition, startups that take advantage of PR strategies to capitalise on investment announcements are 1.5 times more likely to gain follow-on investment within a year. Viral investment news not only establishes credibility but also strengthens the company's negotiating position with potential investors. The success of companies like Clubhouse, which leveraged media attention following funding rounds to accelerate user growth, can demonstrate its efficacy.
How to create a successful PR campaign for raising investment
Keep your communications continuous
The communication during an investment round should not be spontaneous (since you are getting ready to raise funds); instead, you should put in place a long-term plan and keep it continuous. Focus on media events, which can become a new starting point in your communications. This is a chance to show your bright side: inform your potential investors and target audiences about the development of your B2C product, and prove to your partners that you deserve their trust when it comes to B2B.
It is possible to spread this media impulse for at least 3-6 months in order to capture maximum media coverage and promote the story online, including social media, blogs, and through CRM communications. Think beyond classic PR publications – ask colleagues and friends to share the news and write to specific market communities. In a word, make it viral.
Create a unique story for your audience
Communicate the uniqueness of your solution among market competitors by driving attention to its key advantages. Make sure it's more than just a list of product features; make it a compelling story – one that gets people interested and trusting. If your product is not unique, you can emphasise the investment appeal of the market itself and strengthen your position as a leading market player, for example, through a list of "Top Prospects" or industry statistics. Display data on your segment's growth rate and investment potential, showing how your business can benefit from them. Put your strongest points forward in your communications, such as your innovative solutions and unique service quality.
How to make your investment announcement viral
Separate funding news from product news
According to Angel Investment Network (AIN), less than half of UK startups have a good understanding of the fundraising process. In the early stages of a startup, your target audiences will examine your digital fingerprint, seeking validation from respected, influential sources. At the same time, an early-stage startup has a limited number of newsworthy events. But getting VC funding is a validating milestone you can use to stir up attention, even if it doesn't result in a formal press release.
The more a startup scales, the more viral events it generates. It is a wise idea to separate funding news from product news as the startup scales beyond Series Seed: a product that stands on its own has a greater chance of being perceived as valuable regardless of its funding round size.
Include key financial details
When announcing investments, numbers matter. Your announcement becomes more credible when you include key financial details. Providing significant figures to support your funding news is essential, even if you don't share every detail. In addition, a quote from your investors explaining why they backed your company adds credibility to your message. An expert's validation reinforces the success of your startup and gives authority to your announcement.
Keep your timing and exclusivity in mind
Your investment news must be released at the right time and be exclusive to become a trending topic. By offering top media a 24-hour exclusive, you give your story an edge over the competition and create excitement. Timing your release strategically – like Sunday or Monday morning – ensures you'll catch the media and audience when they're most engaged. Finally, write a concise and compelling pitch, targeted at the most relevant media outlets, so your announcement stands out quickly.
Investment PR campaigns: what can go wrong
- Poor documentation of your funding round can become one of the key issues. It is likely that journalists will discredit your story if they cannot verify your claims. In addition, withholding important details, such as investors' names, can reduce the impact of your campaign as media audiences respond better to verified information
- Other common pitfalls include budget constraints. Insufficient funding can result in a campaign with minimal reach and professionalism. Besides, investors can lose trust in a company if founders overpromise or make dishonest claims, leading to legal consequences
- Last but not least, poor media coverage can hinder the success of your campaign. Your story may not attract the attention of potential investors if you fail to reach out to the right journalists and media outlets
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