You have a brilliant idea or have already built a cutting-edge product, and are looking for money to take it to the next level. Yet, there is a challenge. As of now, nobody knows about you, who you are, or what you do. If you are in a situation like this, don’t worry, here’s where a PR strategy can be your best ally.
Beyond just securing media coverage, effective public relations activities have myriad benefits both online and offline. To begin with, PR improves your brand visibility and Google results, and positions your company as an industry leader. This growing sense of awareness bolsters your credibility, which further gives you the legitimacy that investors are looking for. Also, it opens up the doors for you to build a high-quality network that can result in fruitful collaborations with various stakeholders.
Additionally, there is a financial benefit. By leveraging PR, you can optimize your final marketing budget, bringing new leads, customers, and strategic partnerships while reducing your ad spend, something very important right now as many startups grapple to obtain additional funding and are looking to reduce their burn rates.
In this article, I will share five insider tips to help founders boost their fundraising efforts.
1. Craft vibrant and catchy storytelling narratives
Every startup story is a personal story. We are all familiar with those famous tales regarding how iconic startups became what they are today. Airbnb started when co-founders Joe Gebbia and Brian Chesky were facing financial struggles, looking for ways to be able to make the rent.
This narrative will become the foundation for the startup’s external communications, and based on it, you will give interviews—for example, here’s Justin McLeod, founder of Hinge, talking about how his personal experience influenced how he designed Hinge—and present your product at conferences or company events. Similarly, this will be infused into your corporate mission and purpose, which is pivotal when hiring a team and pitching investors.
In line with this, one thing we know at Mindset is that vivid storytelling is always remembered. For example, we worked with Karolina Attspodina, a trailblazing Ukrainian entrepreneur, to strategically position We Do Solar by crafting a unique narrative and connecting their story to the ongoing energy crisis in Europe.
2. Appear in media outlets that are read by investors
Not all media presence is created equal. If your goal is to fundraise, and you do not feature in those outlets that investors read, your chances of securing funding diminish.
Once I ran a survey and asked representatives of VC funds as well as business angels about which outlets they read the most. Almost everyone responded by saying they read TechCrunch and The Information.
Having said this, TechCrunch might not be the answer for every startup. For example, investors in highly specialized sectors like space tech could also prioritize other outlets. Therefore, what I recommend is that you research the media habits of your target investors, and align your outreach efforts accordingly.
3. Secure mentions in rankings and listings of major market analytics
In addition to appearing in investor-centric media outlets, securing mentions in rankings and listings on major platforms like Crunchbase, Pitchbook, and others can significantly enhance a startup’s visibility and credibility within the investment community.
The reason is that these engines are widely used by investors and analysts to research and evaluate startups, and being listed on them adds legitimacy to a startup’s profile, by serving as a validation of its growth trajectory, market potential, and overall viability.
To successfully implement this strategy, ensure that your startup’s profile is up-to-date and features the necessary information. Remember that investors prefer transparency, so, as much as possible, divulge information regarding your previous rounds, investors, and other deals that your company has been involved in.
4. Include subscriber-only media and exclusive newsletters in your media outreach efforts
Many newsletters have risen to prominence in their fields, supported by a loyal community of subscribers who have a genuine interest in reading everything that they publish.
For example, we at Mindset successfully garnered coverage for our client, health tech startup Neatsy.ai, in Bulletpitch, a weekly newsletter that profiles early-stage startups. After the article was published, the company received inbound requests from five different investors, and they were invited to participate in the famous startup show The Pitch.
Artem Semjanow, Neatsy.ai’s founder and CEO, said, “Depending on the target, newsletters may be more effective than publications in top media outlets.” In many cases, this has turned out to be true. When Morning Brew—which boasts over 6 million subscribers—featured Clubhouse, its usage exploded in popularity.
5. Be strategic about your social media presence
A report by FINRA—the financial regulatory authority in the United States—mentioned that a majority of investors under 35—use social media as a source of information. Similarly, European investors rated LinkedIn as the best platform for in-depth learning, ahead of Bloomberg and the Financial Times.
This means that your presence on social media matters a lot. However, you need to be strategic about which networks you choose to be on. If you are fundraising, then LinkedIn needs to be your platform of choice. Not only because most investors are there, but also, because its functionalities are geared to facilitate professional connections. Hence, I recommend that you increase your activity, both by sharing original content and engaging with that created by others.
Final thoughts
Today’s fundraising landscape is indeed challenging. But it is also true that whenever there is a crisis, there is an opportunity. By crafting compelling storytelling narratives, adequately segmenting your media coverage efforts, securing mentions in rankings and analytics platforms, strategically targeting newsletters, and bolstering your social media presence, you can increase the odds of success for your next round of funding, and skyrocket your startup’s growth.
Dina Mostovaya, a global cultural & business strategist and the founder of Madrid-based consulting firm Mindset Consulting.
