By Beck Bamberger, founder of BAM Communications, a PR firm for VC-backed tech startups, as well as OnePitch, a pitch platform for journalists and publicists.
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The cover of Fortune, an invite to speak at TED and a front-page feature in the Wall Street Journal are all examples of what not to expect when your venture-backed startup raises a round of capital. I wanted to put that up front. So many venture-backed founders we talk with and represent have outlandish expectations and dreams about announcing a round of funding.
It’s to be expected to some degree, of course. Founders are dreamers and often outlandish in many regards. However, the media is not, and while funding rounds have become less frequent in 2022, I hope this article will provide honest “guardrails” that expectations for funding announcements should stay within.
A Full Feature Article
Yes, you can obtain one full-feature article. In most cases, an “exclusive,” or full article that one media outlet gets to have, is our strategy for funding announcements. That is, our goal, and the expectation we often set for our venture-backed startups, is to obtain one full-feature article in a specific media outlet we pursue. No matter how great our relationships are, it usually takes one to four weeks to land an exclusive because reporters are juggling many assignments and demands.
To be clear as well, it doesn’t mean this exclusive is on the cover of the business section in the New York Times or on the front page of the Financial Times. Both of those outlets, which are considered “top tier” for their reach and quality, simply don’t pay attention to Seed-, Series A-, B- or even C-funded startups on their front pages—though it’s not impossible to get stories placed in either outlet, often online.
The exception to this “one full-feature” strategy is for later-stage and prominent venture-backed startups headed to an IPO. A solid PR agency should be able to list out the ideal reporters and media outlets for your exclusive strategy such as INSIDER, Forbes, TechCrunch, Crunchbase, VentureBeat, Wall Street Journal and more.
Mentions And Inclusions
There are dozens of great newsletters, such as Fortune’s Term Sheet and StrictlyVC, and many trade outlets, depending on your industry, that can leverage your funding news for additional mentions and inclusions. Mentions and inclusions mean including your funding amount, investors and what your startup does in small portions of a daily newsletter. These mentions and inclusions shouldn’t be discounted though, as their audiences are targeted and add more eyeballs to your funding news. For mentions and inclusions, reporters will not likely request interviews but rely on information provided by your PR team, press kit or press release.
Kickstart Ongoing PR
Media begets media because all reporters research and read what their colleagues write, particularly from competing outlets. After a funding announcement, a PR firm should take full advantage of media momentum and proactively pitch interviews and additional nuggets of news they may have not fully released.
A key point here, however, is the “proactive” notion. If you’re not working with an aggressive agency or working the media machine yourself, media does not typically seek out freshly funded startups.
Inbound Attention
Investors, potential talent and maybe potential partners you spoke with a year ago or so can often fill up your inbox along with countless sales reps, recruiters and consultants who deem your funding proof of dollars to spend. I’ve seen several clients land their largest client to date, get their next lead investor committed and find a major hire from a well-executed funding announcement.
Ultimately, your funding announcement won’t get you a cover of a magazine immediately or an invite to the World Economic Forum. As Ezra Roizen, author of Magic Box Paradigm: A Framework for Startup Acquisitions, is often attributed with saying, “acquisitions are like babies. They happen every day but each is a miracle.” The same applies to funding. Your fundraising is notable to you as the founder, but funding rounds occur every day, even in a down or corrected market. A full article, additional coverage and mentions and perhaps some great inbounds are all within reasonable expectations.
