In the investment journey of your tech startup, PR is often associated with attracting initial funding, but its influence doesn’t end there. This article dives into how PR can play a pivotal role in keeping investors happy by retaining their confidence and enhancing your company’s valuation. From ongoing communication to building credibility and demonstrating leadership, we explore the strategies you need to keep your backers onboard and showcase the value your startup brings to the table.
In a previous post, we have looked at how PR can be a powerful tool to attract investment for your tech startup. (If you missed it, check out how to use PR to attract investors to your business.)
In this post, we will be sharing with you how its power doesn’t stop there, as PR’s capability to help you shine extends far beyond the initial investment phase.
So, now you’ve got your backers successfully onboard, your next question might be, how do I keep them there? To answer this, we will take a look at what PR means for investors, what they like to see, and importantly, how you can demonstrate value to them – especially those who might be a little sticky, sitting on the fence or prioritising alternative spend.
PR can indeed be a crucial cog in the machine that helps to maintain investor confidence and enhance your company’s valuation, and here’s why:-
1. PR builds ongoing confidence:
Investors appreciate (and expect) consistent updates and transparent communication. PR campaigns that highlight company milestones, innovative product launches, market expansions and leadership/talent changes can keep investors informed and confident about their investment.
Media mentions and features in reputable tech/business/vertical-relevant publications reinforce you and your startup’s credibility and market presence. Positive coverage not only reassures current investors but also attracts potential investors.
2. PR can enhance company valuation:
A strong PR strategy helps in shaping the external/public perception of your startup. It’s not rocket science when we say a favourable perception can lead to a higher valuation, and that’s because it can help set up a sense of stability and demonstrate your growth potential. The ability to scale sustainably is the sweet spot you’re looking for.
PR activities contribute to building brand equity, which as you’ll know is a critical factor in company valuation. Investors recognise that a strong brand can lead to customer loyalty and increased market share – bottom line, this is what matters to them most.
3. PR demonstrates your leadership in your target market:
Engaging in a strategically crafted thought leadership campaign – through articles, interviews and speaking engagements – bolsters your credibility and positions you as an expert in your field. You become the safe pair of hands that’s solving an industry-wide problem with a viable solution. We’ve said it before and we’ll say it again, investors aren’t just backing your business, they are backing YOU. They truly value those who are seen as innovators and leaders. Remember – they’re often backing the jockey, not the horse.
Winning industry awards and receiving recognition from authoritative bodies (who doesn’t want to be ranked in Deloitte’s Fast 50?) enhances your startup’s credibility and appeal to investors. It can help open commercial doors and give you a stack of content to work with across channels. Applying for awards requires a strategic approach and tactical writing expertise. If you’re going to go down this path, be sure you’ve got the right comms experts on side. They can literally make or break you.
How do investors like PR to work?
Most investors will expect startup PR to function as a strategic tool that aligns with the startup’s overall business goals – this can be anything from market expansion and product launches to new partnerships and talent acquisition. Getting ad hoc media coverage that doesn’t have purpose might put you in a temporary spotlight, but it won’t drive meaningful results in the long term. No one wants to be a flash in the pan – making spasmodic efforts and accomplishing little to nothing.
So right from the start, before you can even think about showing value, you need to have a clear idea of what you want PR campaigns to achieve – otherwise, what are you measuring success against? Think about your desired outcomes, how they align with your goals and what KPIs will be set. Then, and only then, can you monitor, evaluate and adjust effectively.
As well as being strategically aligned, your PR will need to have measurable outcomes. And this is where PR has historically not been very good. But times are a-changing. Your PR team should be using some cool new tech-powered platforms that can give you access to metrics around – for example – media coverage reach, estimated views, social media engagement,and (for a higher cost) share of voice. Add this to your own marketing metrics around web traffic and lead gen, and suddenly you’ve got a far more comprehensive overview of results and value they bring to the table (more of this below!).
Some investors may also need PR to provide effective crisis management – there’s reassurance in knowing that the business and team they have backed can handle negative situations gracefully, with integrity, and maintain reputation during tough times.
How to show the value of PR
It’s not all going to be plain sailing, as some investors are more sceptical than others when it comes to PR’s influence on a business and so justifying ongoing spend can be tricky. When faced with this challenge, it’s important to show clear and compelling evidence of PR’s impact. Present it in a way that shows how PR efforts have helped you achieve your goals. No need to overcomplicate things, just simply:-
- highlight your achievements
- describe challenges you met along the way and how you overcame them
- share learnings that steered any changes
- and make recommendations for how it can drive even stronger results going forward.
Ready to get started? Here’s our top three prompts to get you going…
- Leverage the heck out of case studies and success stories. Share examples of how PR campaigns have positively impacted your business’ bottom line, market position, expertise on team, or brand reputation.
- Provide reports that show joined-up results: so consider the ROI of PR activities when combined with all your sales and marketing efforts. Remember, this has got to be a holistic approach. Measuring PR as a siloed function doesn’t work anymore and won’t give you a true picture. Yes, present your expanded media reach and social media engagements, but piece it together alongside metrics that show increased pipelines and improved brand sentiment.
- If possible, provide testimonials from other investors who have seen the benefits of PR in action. Peer validation can be a powerful persuader. And while they might deny it, investors often suffer from FOMO. Lean into that!
Ready to unlock the full potential of PR to build investor confidence and elevate your startup’s valuation? Let’s make it happen. Get in touch with our expert team today to explore tailored strategies that align with your business goals and prove your value to the people who matter most.
By Kirsty Jarvis
Kirsty, our CEO and founder, has spent the past two decades in PR and marketing roles, resulting in a wealth of experience leveraging the power of media and creating impactful campaigns for hundreds of startups and well-known brands.
