If you’re a new startup or a company looking to grow, you can seek investment from a variety of sources. There are typical startup funding rounds you go through, and earning this funding provides great PR opportunities that can greatly increase the reputation of your brand.
Startup funding is the acquisition of finances from investors to start a business or to elevate it to the next level. There are many options to explore to secure financing for your business, which vary between country and industry and you should make yourself aware of its sources, finding one that is suited to your needs.
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 way to secure funds, as people will need less convincing than a bank.
Startup funding also comes from venture capital. This is a type of financing that private investors provide to startups that they believe has long-term growth potential. This is similar to investment from angel investors, the difference being angel investors are individuals investing their personal funds, whereas venture capital tends to be from another firm or larger business.
There is also the option of loans from banks and to explore crowdfunding, of which the latter seeks to tap into collective interest in an idea. Government grants could also be an option, and you should research what is on offer in your location.
Unless you work in financing or venture capital, you might not be familiar with the funding round meaning. A funding round is when a company looks to trade equity for investment in order to stimulate growth or acheive their next milestone. Typically there are a multitude of funding press release rounds for startups, each of which is defined by what stage the business is at and how much funding they need to move to the next stage. As a company grows they can secure more funding as they move to different series.
The first round is called seed funding, and is the round of funds a company looks for to launch themselves off the ground and begin developing their idea. This round is mainly focused on making funding opportunity announcements to secure funds for research & development. When your product or service has traction you can look to raise a series A round, and requires you to have a model to grow your business.
If you can demonstrate the growth and success of your business, you can move to the next round, series B. This startup investment round is for companies that are ready to scale up their business, increasing their team size and growing their consumer base. If this growth is achieved then a startup can move to series C funding, which is when a company is looking to expand into new markets or begin acquiring other businesses.
Finally there is series D, a level of funding reached by few startups, and serves to fund unexpected new growth opportunities, or to help if the level of growth expected during series C was not met.
Series A startup funding is the first stage of funding in which a business begins venture capital financing. It is similar to seed funding in that it is equity based, and secures financing by selling the company’s shares. 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 press release is to focus on reaching out to investors to ensure the continued growth of a company. Sharing your investor 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.
A funding press release is a fantastic opportunity for media coverage, as it demonstrates that investors believe in the potential of your company. Thus a funding announcement press release is a sure way to build credibility. It is important to have a good strategy for your press release funding announcement. You announce an investment round for startups by getting publications to share your funding achievements as well as why other investors should be interested in your company.
When it comes to PR funding the investment funding round your company is on will determine your approach to pitching your funding to the media. Top tier publications are only interested in very large investments and probably wouldn’t pick up a story from the early rounds of startup funding. However you don’t just send journalists the numbers, you need to still have a good story to tell to maximise engagement with the news. To do this you need to gather significant data within your business, and have accurate numbers that can demonstrate the growth and potential of your company.
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 all marketing strategies PRLab can assist you with.
PR can help with funding and press release funding campaigns as it increases trust between your brand and investors as well as consumers. Sharing the news that you have acheived funding demonstrates your brand's credibility. There will be fierce competition in seeking financial backing from investors, so PR can be a useful strategy to distinguish yourself from your competitors. By establishing yourself in the media and having a consistent content and marketing plan, you can increase your brand visibility and position yourself as a leader in your industry. It also helps with getting your funding opportunity announcements more reach.
PR also helps to grow your consumer base and expand into new markets by generating awareness of your brand. Like consumers are drawn to established reputable businesses, so are investors, as having a good public image demonstrates lower risk for those you approach for investment. PRLab can offer a range of services to help establish your reputation through earned media, and a consistent content and social media plan. We also offer media training which can help become better and more confident at pitching to journalists as well as investors.