10 tips for effectively announcing a funding round
Time to read: 3 minutes
Yes you can be in TechCrunch! We give our top tips for making sure your funding announcement gets the attention it deserves…
For any start-up, attracting investment is a significant milestone. It’s not just the credibility of knowing that you’re on to something special, but a signal to the rest of your industry that your business is a serious player in the market with a prosperous future ahead.
At this stage of early growth and investment, being able to PR the news is key and you want to get the best out of the opportunity to get the exciting news out and spread the word far and wide. It’s an opportunity to explain who you are, what your business does and why it’s different from everyone else.
Announcing your new funding not only increases your visibility, but it can also help with recruitment drives, attracting top talent, inviting new investors and driving new business. But with the start-up scene moving at pace right now, how do you cut through the noise and ensure your voice gets listened to? Here are my top tips to securing coverage in top tier publications:
1) Numbers talk – journalists want the news and facts: Its near enough impossible to get any coverage for a funding announcement that isn’t able to include the amount raised. If you can, use the numbers in the press release to illustrate the growth behind your start-up and how you plan to use the funds. After all, this is the ‘news’ you’re promoting.
2) Include as much information as possible: Who are the investors? Are they private, institutional, private equity? If funding was secured in earlier rounds, be sure to mention this too. It shows a continued confidence in your business and tells the story so far.
3) Company background: Clearly articulate what your company does and the problem you are providing a solution for. Who are the founders, what is their background and how big is the company? Explain what the money will be used for – it could be new hires, further technology developments or product development.
4) Validation: There is no greater endorsement than being able to quote one of your investors. It doesn’t necessarily need to be the lead investor but having an investor voice in your press release will add an enormous amount of credibility. They should talk about their reasons behind the investment. It might be the management team’s capabilities or a desire to be part of a growing market. You should also include a quote from your company founder or CEO alongside this.
5) Get all your ducks in a row: Once the press release has been written and signed off by all necessary parties, it is important to come up with a game plan for announcing the news to the market. It is far more effective to spend time getting all the materials and content in a good place rather than rush to get the news out there too quickly. Slow and steady really does win this race.
6) Where do you want to be: It’s likely to be vertical trade press that will be the most interested, but you might also find that technology press, investor magazines and start-up publications are where you need to be. Ask your PR agency to make a list of the titles they think you should be targeting to check you’re all on the same page. Between you, agree which titles should be targeted as a priority and which ones can follow. It’s important to use the announcement as an opportunity to build existing relationships with the press and establish new ones.
7) Consider your outreach strategy: Will it be far more effective to reach out to one key publication with an ‘exclusive’, or should it be sent far and wide to lots of different publications? Pitching the story exclusively to one key publication in the first instance does risk alienating others who might have otherwise covered the story, reducing the likelihood of widespread coverage. But it does normally mean that in return you will get a more thoughtful and comprehensive article.
A recent funding announcement from our client Urban Jungle resulted in us securing an exclusive article in TechCrunch who broke the news first. As a top tier title for the disruptive InsurTech, Urban Jungle were thrilled to be covered so extensively in such a key title and we still managed to generate 24 other pieces of coverage on the same day by sending the release far and wide once TechCrunch had published their story.
8) Timing is key: Simple things to consider – will your key spokespeople be around when the announcement is made? If not, consider holding off until they are back from holiday or more available as any interviews will need to be done that day. Does your company have any other news that it is likely to come out around the same time? A drip feed effect is far more effective than an avalanche of news in a short timeframe. Space the news out where possible and go with the most time sensitive first. Finally, keep your ear to the ground – if you catch word of a competitor announcing news around the same time, consider jumping in before them or waiting until their time has passed.
9) Shout from the rooftops: Well, social media will suffice. Use your social media platforms and networks to spread the news and share links to any articles through Twitter, LinkedIn and Facebook. Encourage your teams to do the same. They should be proud of the company they work for and want to share the exciting news.
10) Keep the momentum going: Securing funding is a huge accomplishment and once it’s been announced everyone will be keen to get on with the job at hand. But don’t forget to keep the market updated on your progress. Announce any new senior and significant hires that have come on board. If you have enhanced your technology platform or are now offering new products, tell people! Use the captured interest in your company as a platform to keep going. Once you have established a voice, don’t be afraid to use it. Ultimately you want to position the senior leaders of your company as leading authorities in the market so you need to optimise every opportunity to do this.
