While the top source of startup funding is from personal savings and credit, many startup founders can turn their heads to friends and family for investment. If you’re careful to avoid personal complications, asking for financial help from your close connections is a great funding opportunity, as people will need less convincing than banks.
This is a type of financing provided by private investors to startups that they believe have long-term growth potential. This is similar to investment from angel investors, the difference being that angel investors are individuals investing their personal funds. In contrast, the source of venture capital is typically another firm or larger business.
There is also the option of securing loans from banks or exploring crowdfunding, of which the latter seeks to tap into collective interest in an idea. Government grants could also be an option depending on your location.
PR is a great tool for getting venture capitalists’ attention, and a funding press release is so important in obtaining venture capital. A funding opportunity announcement lets investors know you are looking for investment while simultaneously telling them you are worth investing in. They will consider investing in your company a low risk when compared to businesses they are unfamiliar with.
The goals and objectives of tech PR for startups are to increase brand awareness and position yourself as a thought leader within your industry. By using these strategic communications techniques to increase your credibility, investors will be more trusting of your brand. Venture capitalists generally don’t finance startups from the beginning, so taking time to earn media coverage with effective PR will help secure investor funding rounds.
Acquiring new funding can also attract the attention of top talent for your team and customers or clients for your business.
Seed rounds are the first rounds of funding a business can seek to acquire, and their purpose is to raise enough funds to push a startup from its conception to the initial stages of market research and product development.
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It is the first stage of equity based financing, and as such, is a high risk stage of investment. A seed startup has yet to demonstrate their profitability which is why there is rarely funding from venture capitalists or banks.
Seed rounds are probably the most complicated stage for funding, as a company has limited numbers and information to share with investors. This is why PR for seed funding will focus heavily on the story behind the brand, and why it is a viable and necessary product or service. Despite these risks, investment at the seed round stage can have huge payoffs if a company successfully grows.
An angel investor is someone who invests in a new or small business venture, providing them with the finances to get an idea off the ground and into the stages of research and development.
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Although the funding from angel investors often comes with a higher return rate than more traditional investments, it is far less risky when compared to a loan from the bank debt financing that you have to pay back.
PR is necessary for presenting your business in an exciting way that angel investors will take notice of, ensuring that you are taking advantage of the funding opportunities offered by these investors.
Typically angel investments come from family and friends, but because seed startups have a high rate of failure, it is very important to be upfront about these risks to avoid ruining treasured relationships. Alternatively, angel investments may come from wealthy individuals or groups of angel syndicates who pool their funds to obtain equity of new exciting businesses.
Series A startup funding is the first stage of funding in which a business begins venture capital financing. It is similar to seed round funding in that it is equity based, and secures financing by selling the company’s shares.
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Venture capital is the term used for investment in a new startup, and commonly comes from firms that specialize in investing in new companies that are already generating revenue.
The objective of a series A funding round press release is to focus on reaching out to investors to ensure the continued growth of a company. Sharing your investment funding rounds in the press is a good way to secure further investment, as it can demonstrate trust from other investors and how ambitious a company is in utilizing the resources available to them.
The series B funding round is the third stage of funding for a startup, and the strategies that are involved in securing series b startup funding differs from those involved in securing series a startup funding.
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This is the second round of investment for startups that comes from venture capitalists and is appropriate for companies that are generating stable revenues and demonstrating profit.
The financing from the series B round of funding is used to support a company’s growth to the next stage, which is achieved through increased talent acquisition, developing new products and services and expanding into new markets.
As companies have proven their success at this stage, investment is more low-risk and investors can be comfortable providing larger amounts of financing. These large numbers can speak for themselves in the PR funding opportunity announcement, as a company that is being heavily invested in will generate more interest from other investors. A series B funding press release should focus on how a company is already succeeding and achieving their mission and are looking for investors to continue their growth.
Only very successful businesses will make it to this funding round. This includes not only rapidly growing startups with a substantial user base, but established brands also looking to expand to the next stage.
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Due to the demonstrated success of companies in this round, groups such as hedge funds and investment banks will be looking to get involved in what is now a low-risk investment.
These large investments are great PR as it demonstrates fantastic credibility in a company. Additionally at this stage companies are ready to begin acquisition of other brands, which also provide moments for PR and cements a brand’s position as a leader in their industry.
The fourth stage in a company’s financial funding cycle is series D. In this stage a business is already very successful, and finances are usually sought to achieve a specific goal such as a merger or acquisition, or expansion into a new market.
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It is usually a new opportunity that has presented itself, and as a company has already gone through series C, they need an extra boost of funding to achieve their objectives.
Due to the established success of companies going through this round of funding, PR can focus efforts on top tier publications during funding press releases. Acquisitions and new expansions of companies at this scale will be of great interest, and due to the specific reasons for funding at this level it is a great opportunity to connect your brand’s values into the story.
The saturation of communication in the digital age affects investors, who are constantly bombarded with innovative startups. Public relations can be of great service in distinguishing you from your competitors and helping to convince investors to invest in your company.
PR helps you handle media attention during a funding announcement press release. Establishing yourself in the media builds trust among your target audience and potential investors. This is because earned media is viewed as the most authentic form of marketing.
Obtaining funding provides great PR opportunities to present your business as credible and trustworthy. Using PR to increase your brand visibility and establish yourself as a leader in your industry is a sure way to increase interest in your brand and secure success at various investment rounds, as well as help you to expand the reach of your funding press release.
Getting the funding news covered across the Benelux Region
As part of the long-term strategy of Siilo, we communicated their latest funding round to tier 1 outlets across the benelux region which resulted in interviews and over 10 pieces of coverage across different outlets including TV. Read further about how we made it happen.
For Siilo we landed coverage in Netherlands, United Kingdom, Belgium
Subscription billing software
Driven by increasing demand for subscription models in businesses across the globe, only further fueled by the global pandemic, Chargebee had just closed their Series F funding round. They needed this funding news to reverberate and be heard globally, and that is why they came to PRLab - to get this news far and wide.
For Chargebee we landed coverage in Netherlands, United Kingdom, Belgium
Social intranet and collaboration platform
Happeo was raising its platform and scaling up to hundreds of employees. This was news, and it was big. For something like this you want to shout in exultation from a rooftop, but a voice can only carry so far. Happeo needed this launch of funding news to reverberate and be heard globally. That is why they came to PRLab, they wanted to make waves.
For Happeo we landed coverage in Netherlands, United States, Finland
From cash to credibility: how a funding announcement can generate over 50 pieces of coverage
Unifonic wanted to announce its global ambitions with its Series B raise, securing media coverage internationally and in the local MENA region. Our team of agile PR experts got to work, creating press releases suited for many different markets , honing pitch angles and securing coverage in the big leagues such as Reuters, Bloomberg and Forbes.
For Unifonic we landed coverage in Netherlands, Belgium
The HR & EdTech company using microlearning to increase employee learning and engagement
In 2020, MobieTrain remotely entered the Dutch market from Belgium. As a relatively unknown company at the time, our challenge at PRLab was to generate stories that would be make them relevant to a new market. Through thought leadership content, funding announcements and interviews, PRLab helped MobieTrain generate a buzz in the Netherlands.
For MobieTrain we landed coverage in Netherlands, Belgium
How PRLab adapts to the needs of different international markets
Having grown successfully since their launch, ChannelEngine raised their Series A funding round of 5 million euros to continue expanding into new markets. They approached PRLab to help secure coverage of this funding announcement in four different countries. Find out how we developed and responded to the needs of these different markets, evolving our strategy to ensure results for our client.
For C. Engine we landed coverage in Netherlands, United Kingdom, Germany, Italy
With the series B funding coming at a key moment in Agicap’s business growth, PRLab was ready to celebrate the success alongside them. With a strict deadline, PRLab took on the task to make Agicap known in the Dutch market.
For Agicap we landed coverage in Netherlands
Landing a funding announcement in The Nordics + NL region
HiBob hired PRLab to efficiently land their latest funding announcement in 3 key European markets simultaneously: Sweden, Finland and The Netherlands. Read further about how we made it happen and how we managed to land over 20 pieces of coverage in key publications
For HiBob we landed coverage in Netherlands, United States, Schweden
Startup funding is the acquisition of finances from investors to start a business or take it to the next level. While the top source of startup funding is from personal savings and credit, many founders can get help from friends and family. Startup funding also comes from venture capital. This financing private investors provide to startups that they believe have growth potential. This is similar to investment from angel investors, but angel investors are individuals investing their funds, whereas venture capital tends to come from a firm or large business. There is also the option of bank loans and exploring crowdfunding, which taps into a collective interest in an idea.
Series A startup funding is the first stage of funding in which a business begins venture capital financing. Venture capital is the term used for investment in a new startup and commonly comes from firms that specialize in investing in new companies already generating revenue. It is similar to seed round funding in that it is equity-based and secures financing by selling the company's shares. The objective of a series A funding press release is to focus on reaching out to investors to ensure a company's continued growth.
The investment funding round your company is on will determine your approach to pitching to the media. You announce an investment round for startups by getting publications to share your funding achievements. Top-tier publications are only interested in large investments. However, you don't just send journalists the numbers. You need a good story to tell to maximize engagement with the news. There are many logistics to consider with a funding announcement, such as the timing, the images used, reaching out to clients, and distributing on your website and social media. These are strategies PRLab can assist you with.
Various factors, including the specific PR funding option chosen, the complexity of the funding process, and party responsiveness, influence how long it takes to secure PR funding. In addition to the choice of PR funding, the complexity and amount of documentation required can also affect the timeline. For instance, traditional banks may take a long time to approve a business loan. Depending on the funding provider or investor, they may spend a variety of time conducting due diligence and evaluating the business. They may need to evaluate the financial health of the business. In addition to market conditions, regulatory requirements and other circumstances can play a role.
The cost of PR funding can adversely affect your cash flow and profitability since it entails repaying the funds and paying interest and fees. PR funding may come with fees, like origination fees. These costs can add up, potentially affecting the ROI of the campaign. Failure to meet obligations may result in default, damage to your credit, lawsuit, or loss of other assets. You may be required to give up ownership, equity, or control if you choose PR funding.
There are many funding rounds for startups, each defined by the business stage and how much they need to move to a different round. The first round is a seed round when a company looks to launch its idea. You can raise it to a series A round when it gains traction. If you demonstrate growth, you move to the next, series B. This round is for companies ready to scale. After, they move to series C to expand into new markets. Finally, series D, to fund unexpected new growth opportunities or help achieve the growth expected during series C.
PR can help with funding as it increases trust between your brand, investors, and consumers. Sharing the news that you have acquired funding reinforces your brand's credibility. Taking advantage of funding press releases and sharing your progress is a way to secure investment. It can demonstrate trust from other investors and how ambitious a company utilizes the available resources. PRLab can offer various services to help establish your reputation through earned media, including PR funding and a consistent content and social media plan. We also offer media training to help you become more confident at pitching to journalists and investors.
Funding for your business could be anything from investments from friends, family, or mentors to investments from venture capitalists or banks. PR funding shares these achievements in the media, spreading your mission and positioning your business as one investors believe in. PR funding incorporates funding opportunity announcements so that investors can approach you and get involved in growing your business. PR fundraising is the process of obtaining new investments using strategic PR techniques. This could look like anything from press coverage to social media campaigns, but the overall goal is positioning your business as worth investing in.
PR funding repayment terms can vary. Funding can be repaid by a fixed repayment schedule in regular installments over a specified period. A royalty-based repayment structure may be used. The provider receives a percentage of the revenue generated from the campaign. Depending on performance metrics, funding may be tied to achieving predetermined goals or other KPIs. A PR campaign may require a one-time lump-sum repayment on a specified due date, along with interest or fees. PR funding can be repaid with equity or company ownership stakes.
You should start by evaluating your business' PR campaign funding needs, taking into account the financial situation and goals. Determine what funding your business can qualify for, assessing each funding option carefully, and consider then whether you can meet the requirements for these. Be sure you consider the campaign's specific objectives, the estimated costs, and timeline. Review and compare the costs, terms, and conditions of each option, including interest rates, fees, repayment schedules, performance-based obligations, and any equity stakes.