How to communicate your startup’s funding round
Photo by Markus Winkler on Unsplash
The notorious first (or later) funding round is an important milestone in the history of every startup. Whether it is crowdfunding, raising venture capital or through other types of investors, once the founder has successfully raised capital, he or she naturally wants to share the news with the public. However, if the rise of startup culture and constant funding news has shown us one thing, it is the certainty that you are not alone with this desire. Therefore, funding announcements are no longer such a newsworthy item on its own for journalists. Sadly, media cycles have been consumed by this type of announcement and startups often struggle to stand out from the crowd in press releases. So, how can founders cleverly place their startup in the media?
Growth potential lies in the selection of the right target media
Whether B2B or B2C, startups want to improve their credibility and awareness through public relations. The more convincing a startup appears to the outside world, the more likely journalists will report on it and investors will show interest in the company.
Before sending out the press release, it is important to think about a strategy. Two of the most important things are: refining the target group and your own core messages. Who is the addressee of the startup? This could be first users or buyers, further investors or even political decision-makers. What is the message that should be conveyed to this target group?
Once a strategy has been established, the appropriate media contacts can be selected. In addition to the usual startup media, such as TechCrunch or Gründerszene (now Business Insider), every startup should also consider the major business publications and daily newspapers. After all, founders and their innovative ideas are part of everyday news, so investors are particularly interested in startups that make it into both, the tech trade press and the high-reach business or daily media. Because whoever succeeds in both, points out that he is not only relevant in his own bubble, but could also gain importance for the economy as a whole.
Stand out by highlighting the added value of your funding announcement
As mentioned before, a startup launch on its own has no reason for existence in the media. New companies are being founded every day, which makes it even more important to clearly highlight one's own relevance and angle. It also makes it easier for journalists to make their selection in the daily flood of press releases in their inboxes.
In the case of funding announcements, relevant results not only from the sums collected, but also from how the startup fits into the larger context. Whether it's trends, socially relevant issues, or an exceptional startup story, all of these should be used to make your startup shine. When it comes to the sums collected, journalists are primarily interested in hard figures: Who? What? When? How much? Why? Often, at the insistence of investors, many startups tend not to publish or reveal these precise figures. What most startups however don’t initially know: experienced journalists can get access to such numbers via several resources such as the annual report of the Federal Gazette.
Every founder should have a well established vision and a mission that hints at the future of the startup. Therefore, the funding round can be used as a hook to clarify the profile and goals of the startup, such as an expansion into further markets, a new product line or upcoming features of the product. All information should be completed with measurable key figures, such as market size, reach or user numbers. Another tip for good practice is for the founders to be ready and prepared to answer critical questions from media representatives, which often connect to issues, macro-trends in their industry and how they are doing it differently, etc. It is often recommended doing media training for the founders, especially those who are completing funding or significant funding for the first time.
Exclusive story vs. mass mailing
Especially in the beginning, many startups choose mass mailing as the easiest and apparently most effective way to communicate or even use free press portals to reach as many journalists as possible. This may work well for urgent or economically and professionally relevant topics, but the attention of editors can usually be better gained through exclusive stories under embargo - a blocking period for journalists. In addition, it is important to build relationships with the most important media contacts and to acquire background knowledge about the press yourself. So taking the time to research the right type of publication and journalist, and addressing them directly often brings in much better results.
This gives the selected journalists the opportunity to dive deeper into the story before anyone else can. Extra bonus: As a founder, you can determine more quickly through this targeted exchange whether a medium also shows real interest in the topic. In addition, the relationship is strengthened and queries can be clarified at an early stage. In the case of a mass mailing, the startup reaches more media, but the funding announcement is often only taken up briefly, since the time is not sufficient for much more due to the competition of the media.
Staying relevant in the PR universe after your release
If the funding round is completed, many founders think that the company is now successfully placed in the media and press work is over. However, when you consider how fast-moving our daily news is, it becomes clear how brief the gained attention and trust is. Keeping in touch with journalists is a must and keeping them in the loop is often appreciated. While not every story will end up being newsworthy, you will not be starting from scratch. Before you know it, your new product will launch, or you will be raising more funds, and your story will continue to evolve with journalists and different publications. Therefore, it is worthwhile for startups to use PR as a long-term communication tool.