Startups are famous for innovation, risk, quick decision-making, and most importantly — limited funds. With little to no starting capital, the ambition to flood the market with a transformative product or service often wanes. That’s why many founders seek funding from venture capitalists or angel investors.
However, most of these VC firms or angel investors are seasoned entrepreneurs, meaning they’re more likely to be selective with their support. As such, they’ll mostly gravitate to business ideas demonstrating a high chance of success. This article on Corporate Finance Institute claims that startups have a 0.7% chance of getting an equity check from top VC firms like Andreessen Horowitz. It doesn’t end there. Even after funding, your startup has an 8% possibility of success.
Building a startup is difficult for most people and brings an ever-rising fear of failure. VC firms are not only selective but are unlikely to notice your brand without some level of media presence. That’s why your business — especially in its early stages — needs media coverage to be seen as credible and be in a better spot for future funding rounds.
The benefits of media coverage for startups
Many startup founders often bootstrap to keep the vision going, but not many can continue with no outside backing for long. As a result, they often turn towards participation in funding rounds or establishing connections with a shortlist of entrepreneurs looking to fund the next disruptor. However, not many of these potential investors will agree to a Zoom chat or coffee meeting when not much is known about your business online.
In a recent conversation with Sim Aulakh — founder of boutique PR agency EstablishCred — he revealed some key insights into the advantages of building visibility through media coverage.
“Most founders assume VC firms will jump at the sound of your idea. Yes, you may truly be on to something, but these people have built careers in business. What matters most is how well-known you are in the media. How many people are talking about your startup?,” he says.
Besides attracting investors, occasional appearances on media platforms offer you a golden opportunity to share your business idea with an audience other than the startup’s team.
“Media coverage is a great way to reach a wide audience. It gives you the chance to tell your story and share your vision,” says an article on Faster Capital.
Why you should aim for tier-1 media platforms
Coverage in any media outlet is fine, but if you want to do things differently from the rest and boost your brand’s chances of getting funding then scout for top-level outlets. James McCann in ClearStory International writes “Make no mistake, attracting top-tier media coverage is a key milestone in building your company image.”
Aulakh, too, agrees. “Approach journalists from prominent places like Forbes, Inc, Harvard Business Review, and Fast Company. Having something as little as a backlink to your website could do well for SEO. It also builds confidence, authority, and credibility which you will need ahead of your first or next funding round,” he advises.
It won’t be easy, especially when your product is in a competitive industry like AI. Plus, your pitch could be buried in the slushpile. That’s why you need a solid PR team to help with words of encouragement regularly and ensure your brand gets the awareness and credibility it deserves.
How to position yourself for tier-1 media coverage
Before pitching a staff reporter at TechCrunch or VentureBeat, you should have a comprehensive press kit. Not only does it demonstrate seriousness on your part but it gives a competitive edge over other startups seeking coverage from the same journalist.
When asked to comment on the basic elements of a press kit, Aulakh shares “Let it contain essentials like a summary of your product, its use cases, press release, customer testimonials, and any other material you need relevant to your brand.”
Pitching reporters demands research and patience. Most of the time, you’ll wait for responses that may never come. That’s why it’s best to approach multiple platforms and expect at least one to indicate interest. To raise your chances of getting positive feedback, Aulakh offers three tips:
- Build sustainable relationships with reporters beforehand.
- Craft a stunning pitch that not only describes your product but makes it hard to ignore.
- Send your pitch emails to multiple prospects.
Building a business is no easy task, but the right mindset coupled with maximum effort should make a difference.
