Venture capital investments are increasingly hard to come by. With the stock market heading into bear territory and inflation reaching all-time highs, investors are making fewer VC bets and expecting sweeter terms when they do. In fact, some analysts say VC investments will decrease by 70-80% in the coming months. And that means if you’re a Stage 2 start-up looking for Series B or C funding, you need the biggest competitive edge to differentiate you in the market.

This starts by building credibility with prospective investors. And the best way to do that is with an aggressive earned media strategy that garners endorsements from top-tier media. Here’s how working with a PR firm can set your start-up apart so you can secure the VC cash you need to propel your business forward.

Invest in PR to Secure the VC Investments Your Start-Up Needs

Your advisors are probably telling you to conserve cash and temper expectations. But let’s be honest — you can’t afford to simply tighten your belt and wait for the market to shift. You need to deliver ROI to your current investors as quickly as possible and secure additional capital to fuel your company’s upward trajectory. So it’s time to shift your focus toward making a stronger case for why your company deserves funding. 

PR is a strategic tool to increase your credibility and position you as a leader in your industry. And the good news is it also happens to be one of the most cost-effective ways to accomplish these objectives. 

Advertising campaigns are expensive. Presenting or manning a booth at a trade show can also take up a significant portion of your marketing spend. But investing in an earned media strategy is affordable and attainable and has the potential to make a lasting difference for your business.  

Find and Hone Your Start-Up’s Unique Positions of Authority

You know your industry needs the product or service your start-up offers. After all, you’ve built an entirely new company around that core belief. But to stand out in a crowded VC landscape, you need more than a solid business plan. You need to communicate unique positions of authority.

At its heart, demonstrating authority is an act of service. Your start-up’s thought leaders possess insights that can help your potential customers make smarter decisions, plan more effectively, and navigate complex challenges. Sharing your knowledge in a strategic and thoughtful manner shows your audience and investors you’re worthy of attention.

Firms like Greentarget can help you discover and hone your points of view — and then leverage them to make a name for your start-up in the media. This happens through:

• Talking with your company’s leaders and subject matter experts to learn about their expertise and build the foundations of your content plan
• Reviewing the earned media landscape to determine what journalists are writing about and what their needs are
• Developing hypotheses about needs in your industry and then conducting primary market research to suss out salient insights
• Discovering what topics have been discussed at length and identifying gaps for your experts to step into
• Talking with your company’s leaders and subject matter experts to learn about their expertise and build the foundations of your content plan
• Reviewing the earned media landscape to determine what journalists are writing about and what their needs are
• Developing hypotheses about needs in your industry and then conducting primary market research to suss out salient insights
• Discovering what topics have been discussed at length and identifying gaps for your experts to step into

For example, say your start-up is launching a software platform for supply chain and logistics. Given the world’s ongoing supply chain disruptions, reporters are eager for new insights from qualified subject matter experts. And it just so happens your CEO is aware of changes to shipping practices in Asia that might affect the landscape in the coming years. 

In this scenario, we would take the lead to conduct extensive research on the topic, identify gaps that haven’t been covered yet, and work with your CEO to flesh out strong positions worthy of media attention. In turn, your start-up establishes its position of authority in the public arena and demonstrates to investors that you’re worth backing.

Use Storytelling to Demonstrate Your Start-Up’s Value in the Market

Facts alone won’t inspire VC investors to bet on your start-up. In fact, stories do a better job of persuading people than data ever does. That’s because narratives evoke an emotional response — and humans tend to lead with emotion when making decisions.

The same holds true in B2B decision making. Even the most sophisticated and educated professionals tap into their emotions to guide them rather than leaning on rationality alone.

Of course, facts still matter. VC investors will most certainly pay close attention to your business plan. They’ll scrutinize your strategies and ask pointed questions about how you’ll follow through on delivering the ROI you predict. But stories bring those cold, hard facts to life and ultimately do the hard job of persuasion. It’s an example of the “show don’t tell” philosophy. Every start-up has its hard data and KPIs. But through intentional storytelling, you can shape those metrics into a narrative that assures investors they’re making the right decision. 

So if you want to secure VC cash in a tight market, make it a priority to tell compelling stories about the value you bring to your field. 

Paint a Picture of Long-term Impact

Many start-ups come and go without ever reaching the success they envisioned. So it’s important for potential investors to know that you have a solid vision for your product or service. They need evidence and reassurance that your start-up will stand the test of time. 

The first step is to make sure your intellectual property is protected. Secure any patents required so you don’t risk losing out to an unscrupulous competitor. Then, create narratives showing how your start-up will meet a need or fill a niche not only now, but in five years, ten years, or longer.

How One Start-Up Used Storytelling Effectively

One of our start-up clients, Zipari, used storytelling extensively in their efforts to grow their business. When they launched their signature product — the only consumer experience (CX) platform built specifically for health insurance providers — they needed to elevate the company’s position as the leading innovator (in an industry that’s notoriously slow to innovate).

We harnessed Zipari’s unique understanding of the digital guts of health insurers to position Mark Nathan, Zipari’s CEO, as a thought leader. We established a regular cadence of founder-led thought leadership and media coverage at key points throughout their growth cycles to develop a generous brand voice and reinforce the company’s vision. Through this thought leadership coverage and storytelling around its CX platform, Zipari shared how they helped clients (health insurers) improve ROI and drive healthier member actions.  

As a result, Zipari secured a strategic growth investment that allowed them to acquire another healthcare engagement platform (HealthX) and significantly grow their company’s value.

Start Leveraging Your Authority to Secure the Investments You Need 

Your company already has extensive amounts of expertise to leverage. You just need to identify the unique positions of authority that set your company apart — and then tell the stories that will resonate with your audience and investors. 

Greentarget can help — just reach out.