A funding announcement to a startup founder is a little like a World Cup to a football player. You are only likely to get two or three opportunities to shine, so it feels all the more important to get it right and achieve your best results.
As with everything in PR, a good place to start is to decide what you want to get from your funding announcement, what are the business objectives behind it? That might be to warm up other VCs for a future round, or it might be to showcase the momentum you have built as a business.
Often it is the first time a startup has communicated with the wider world, their first step in PR and they want to introduce the company as much as publicise the round. It might even be an obligation decided for you by a current investor. But the ‘why’ is vital, because that will inform your narrative.
1. Don’t just focus on the money
A funding announcement that doesn’t mention the amount raised is a bit of a non-starter. But it shouldn’t be the only interesting thing. The amount itself is mostly incidental – unless it’s a crazy figure – and what journalists want to understand is what does this prove, what’s changing because of it, why now.
An angle that is broadly ‘we are excited to announce’ is pretty boring. What would be more interesting is whether this is something brand new, is it something that validates existing market trends (or goes against them), is the founder journey unique (and genuinely distinctive)? Whatever angle you decide on, make sure the story is in the headline and the opening paragraph, not buried away in paragraph four.
2. Remember timing and the basics
News still exists on a Friday. Journalists run stories, conduct interviews and publish profiles. However, you want to give this every chance to succeed and the best way of doing so is to avoid Fridays, when the week is drawing to a close. The same applies to the end of the month and the end of a quarter.
You also do not want to rush the announcement, which should be done according to comms best practice rather than anything else. And if you have decided to offer an exclusive, time should be factored into that process too. An exclusive typically buys you a bigger, more in-depth piece and a flagship story for everyone else to react to, at the cost of one title getting it first.
Releasing to everyone at once spreads the news wider but probably a little thinner. It’s worth double-checking that you have everything you need in good time ahead of launch day including:
an approved press release
a quick backgrounder for journalists, known as a document or briefing
imagery (headshots, product shots, logo)
spokesperson availability, to speak to journalists
an internal communications plan – it’s ok for employees to find out the day of the announcement but it’s not ok for them to read about it in the press
3. Don’t stop there
Your funding announcement has gone out. You’ve got some great coverage and you’ve had a little interest from other VCs. Your startup is now on the radar. This is categorically not the time to stop or even pause your PR. You need to build an ongoing relationship with the reporters that cover your space and you cannot expect them to remember you in the busy and fast-moving startup and media sectors.
PR isn’t something you deploy when you feel you’ve got some major news, such as funding. It works much better as a constant drumbeat – sometimes the rhythm might be stronger than at others – so that when the big moments arrive, you are best placed to capitalise.
About the author
With 20 years + PR experience, Paul Allen is MD of Rise PR, the tech pr agency that specialises in helping startups and scaleups tell their story.
A funding announcement to a startup founder is a little like a World Cup to a football player. You are only likely to get two or three opportunities to shine, so it feels all the more important to get it right and achieve your best results.
As with everything in PR, a good place to start is to decide what you want to get from your funding announcement, what are the business objectives behind it? That might be to warm up other VCs for a future round, or it might be to showcase the momentum you have built as a business.
Often it is the first time a startup has communicated with the wider world, their first step in PR and they want to introduce the company as much as publicise the round. It might even be an obligation decided for you by a current investor. But the ‘why’ is vital, because that will inform your narrative.
