« Amazon List | Main | The Death of Taglines: How about Taglines Galore? »

November 28, 2004

Funding Releases: When to Pull the Trigger

"PR builds brands. Advertising maintains them."

Given their limited resources and early stage, most venture backed start-ups try to heed this sage advice from Laura Ries. They recognize that PR is the most practical way to help them get on the map, get noticed and even to stoke up the moral of their teams. Start ups, even those so smart about product releases can be a bit simplistic when it comes to PR: i.e. PR = press, press = news, news = press relases, a press release of something important to me = news, press releases = good PR.

This especially comes into play when deciding when, if, how to announce an event very important to them - their funding. As a start up CEO or marketing person, when you read daily announcements in Venture Wire of other companies getting funded, it can be really, really tempting to let the world know that you made it too, especially after going through all those annoying pitches and due diligence.

But just because you got funded, even from the best VC in the world ;-), doesn't mean that annoucing it is going to do you any good. I know we are always harping on putting the strategy horse before the tactics cart, but without a clear overall strategy, a sound press plan, and the right timing, a premature announcement could have the opposite of the desired impact. So here are some things to consider before making the vaunted funding announcement:

• The value of stealth. This is the play we most often recommend to start ups - and for good reason. Few resources, few defenses, the need for time. And stealth means stealth - staying under the radar is inconsistent with proactive press. Before you lift your head above the radar, make sure you are ready. Ready for the attention, for the customers, the competitors, the criticism. Be sure you know which play you will be moving to next. Remember, your funding is news just between you and your funder, and it really can stay that way until you both chose otherwise.
• Keeping your goals in mind. If you really are ready to decloak make sure you know what are you trying to accomplish. Who is the target of your PR? Is it other investors? Can you get to them otherwise? Is it prospects? Where do they get their news? Potential partners? Same question? Will you be there? Is it potential recruits? Same question. Competitors, market entrants? What are you trying to signal to them? Are you aiming high enough? Do you have what it takes to get there?
• The difference between annoucement and coverage. Given all the questions above, is the announcement of your funding enough to accomplish any of these goals? Frankly, not usually. Sure you will likely get a mention in the daily issue of Venture Wire, but does that reach any of your important constituents? Does simply saying that you got funding mean much to anyone else? Does a simple press release mean that you will get covered at all by the press? No. While writing a great press release is a great excercise in getting your positioning and messaging down, the press is unlikely to use any of the quotes in it even if they feel like covering your story.
• Three legs to the early coverage stool. If in fact you are going to go out, you ought to make sure that what you get is good. I have a long standing bias that you ought to keep your powder dry until you can do a really great "launch". And that one piece of news alone is not enough to really get started. It is usually best to have three. Funding is fine as one of them but not enough. If you really want to look substantial, to generate interest and look promising, you ought to have three different announcements in one. How about signing a referencable customer or partner who will be quoted? How about hiring a recognized industry big wig? Even the news of releasing your first product, even a beta can work if you have a few other stools.
• Making the most out of what you get. In addition to making sure you have three legs to your stool, make sure you have warmed up the press you intend to target. Make sure you get noticed enough (see this post on press releases and search engine optimization)
• Keeping it going. And make sure you think about both the short term press and the long leads. It's great to have three legs but if you want to be more than a flash in the pan you have to have a plan to keep the momentum or at least perceived momentum going. Build a plan for the proof you will need to support this momentum and to grow your status over time. This will make all the news you later try to get easier.
• Dealing with the Unforseen. The story you want to write is not always the same one that the press wants to write. Remember this. Coverage comes with risk. That is why it is better to be proactive than reactive. No matter how tight lipped you and your VC, there may be leaks. Local press is especially pushy to find out what's going on. But no comment can still be a fine response. An unsubstantiated leak most often will not blow your cover for when you launch later. Whatever the case, make sure you really do your rude Q&A and rehearse.

Posted by johnza at November 28, 2004 10:43 AM

Trackback Pings

TrackBack URL for this entry:
http://www.geekfishing.net/cgi-bin/mt-tb.cgi/1321

Listed below are links to weblogs that reference Funding Releases: When to Pull the Trigger:

» Funding releases from NW Venture Voice
You got the money, when and how should you let everyone know? This entry from marketingplaybook has some thoughts on the topic.... [Read More]

Tracked on December 2, 2004 06:09 AM

» Quick PR lesson from Vy Blog
Cribbing from the guys at Marketing Playbook as they talk about how / when to launch a funding news release. Not a bad post -- I don't agree with everything, but the parts I liked best were these: Keeping your [Read More]

Tracked on December 10, 2004 08:48 AM

Comments

Post a comment