You don’t have to be a SaaS genius to know the importance of funding. For many, funding is the fuel behind scaling a startup, hiring the right people and attracting the right customers and investors — and a lot of them. But often, the rate of support for the success of startups begin to decline after their first round of funding. In fact, according to CB Insights, 67% of startups fail to exit or raise additional funding, 48% of startups make it to a second round, and only 15% raise a fourth round of funding, usually a Series C.
That decline is one of the reasons that the strategy behind your funding announcement is just as important as the dollars raised. By partnering with an experienced PR firm, you can extend your funding announcement much farther than your announcement day reaching all four pillars of B2B SaaS PR — investors, partners, customers, and employees. Without the proper strategy and support behind you, you can become victim to these three common mistakes.
Mistake #1: Not leveraging investor relationships
Your investor is more than a name, so don’t treat them like an ATM. They’re putting a LOT of trust in you, your business and your product. There’s a reason they’re investing in you. It’s essential to maintain that relationship beyond your funding announcement by communicating with your investors on a regular basis. Provide them an update on your goals, how you’re utilizing their funds, and what’s in store for the near future. This can be done through a simple monthly email.
Additionally, work with your investor’s PR firm to make sure you aren’t overlapping each other’s efforts and maximizing the announcement. When you feel like you’re in a good place with your investor relationship, invite them to be included as a spokesperson in your press release announcement. Investors are an excellent source for media, and add extra validation to your mission as a company.
Mistake #2: Relying solely on a press release for coverage
Your funding announcement is so much more than a press release. In October 2016, there were 1,092 press releases distributed each day. I’m no math major, but that’s about 45 press releases every hour. With that much noise on a daily basis, you simply cannot rely only on a press release to share your funding news.
Let’s look at TechCrunch as an example. TechCrunch is a well-established outlet that shares funding announcements. But you’ll never see TechCrunch run a syndicated press release. The reporters dig deeper to find the why behind announcements. Partnering with a PR firm can help you find the ‘why’ and share a compelling story with target media.
Additionally, when you begin to look beyond a press release to sharing the ‘why’, it opens up the possibility of targeting specific trade verticals, local media outlets, and even investor-specific media.
Mistake #3: Radio silence after a funding announcement
Every startup has a story — maybe it began in your parent’s garage or your college dorm room. Stopping press reach after a funding announcement — when you still have a story to tell — is like walking away with a winning hand on the table.
Share your story in thought leadership articles and interviews following your announcement. If you’re struggling to figure out how to position your story, ask yourself these questions:
- Why do investors believe in my product?
- What are the market/industry stats that make this a trend?
- How is my company different than my competitors?
Leveraging customer case studies and client testimonials is another way to further your announcement. HubSpot is a great example of a company that had a consistent drumbeat of coverage and noise from their $5 million Series A to IPO. Let your PR firm share your funding story — and you focus on getting to the next round
Now that we’ve talked through three common mistakes, download our ebook on how to leverage PR to maximize your funding momentum.
- 3 Common Mistakes SaaS Companies Make When Announcing Funding - August 28, 2019
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- 3 Steps to Finding Your Customer Advocate in the B2B Customer Journey - January 29, 2019
- How to Use PR for Sales: 3 ways your sales team can use media coverage - July 31, 2018
- How B2B SaaS PR Can Help Power the Customer Journey - May 22, 2018