It doesn’t matter which method you choose – crowdfunding, a dedicated own-label platform or pitching to angel investors – fundraising is hard work, takes time and can be about much more than just raising equity finance. Regardless of the method, PR is a critical element of every successful fundraising campaign. Here are our top three reasons why every start-up needs PR as part of their fundraising strategy.
1 It gives your brand credibility
Your campaign is underway and people are starting to notice you. What’s the first thing they do? They Google you. If the only hit they get is your company website, it will undermine your credibility. However, if they’re able to see articles and media coverage – fundamentally third-party endorsement and validation – about your expertise, product or service, it makes your brand infinitely more trustworthy. A perfect example would be a miracle face cream – you read about it in one ad, it’s just an ad. You read about it in multiple publications and you have some genuine substance to the claims.
2 PR will attract and build customer advocates – who will want to invest
A growing trend in 2019 among consumers is the desire to be part of their favourite brand’s ‘tribe’. For brands with a clear proposition that resonates with consumers, PR is essential. A well-crafted message and continued coverage in the publications your audience is reading, takes them through the journey from awareness to advocate – and it’s the advocates who will want to invest in your business. The fertility company, Ovisense, provides a good example of this in action. With a clear PR strategy as part of their fundraise, they were featured in the Daily Mail. This publicity lead to a huge boost in awareness, which then translated into new customers.
3 It drives direct investment
Clearly the holy grail of any fundraising campaign is the money. Whether you’re a start-up or a well-known brand, anything that raises your profile is a benefit to your business and is more like to drive investors to your door. Coverage can drive direct investment in a start-up; a great example is the outdoor advertising tech company, Lightvert. Their fundraise hadn’t hit its target until their PR agency landed a piece in the South China News. This led to two Asian VCs fighting over them, 326 new investors and an eventual raise that was 114% of their target.
It’s also great for established brands: Smartplant – a successful app that tells you when to look after your plants – were already well known. They had a feature written about them in a glossy magazine; not only did this drive their campaign towards achieving their target, they also reached an entirely new audience and the business grew exponentially.
Planning a fundraise? We can help. Learn more about our own-label fundraising platform that gives you control over your campaign. Complemented by a strong PR strategy, you’ll be giving your business the best chance of reaching your funding goal.
Chantal Cooke, Panpathic Communications