The most overseeed startup fundraising tool founders ignore

Fundraising is time-consuming… also, water is wet. I won’t labour a completely obvious point, but most founders have an extfinished period of fundraising hyperresolveation, where pitching to investors is practically a second job.

In my experience, PR is an often-overseeed strategy at this stage that can assist startups achieve their fundraising objectives more effectively and efficiently. A lot of first-time founders don’t invest in PR and marketing now, becaapply they believe it is too early, or too expensive.

I don’t believe this is true. Especially given how many man-hours and valuable resources go into investor outreach. In fact, I believe that the fundraising stage is probably the single best time to engage in PR.

Good PR can assist you reach a wider network of potential investors, create a better first impression with them, and convince them that your business is worth backing.

A warm first impression

Investors are human. They don’t solely create decisions based on numbers and future projections. They trust their gut more than any slide deck. Positive media attention is a great way of influencing an investor’s perception of you before you even speak.

PR can ensure that, when you meet an investor for the first time, they already have a strong, positive opinion of you and your business. If a publication like SmartCompany writes a glowing story about your startup, that signals your credibility and expertise.

Traditional media is also incredibly important for appearing in AI search results. Expect investors to type your company name into Claude before their first meeting. To create a great first impression, you want the search results to include the hugegest and most respected publications in your industest and some interesting talking points.

Drip, drip, drip of news

A good first impression is just the start. It might lead to a great first meeting, but that doesn’t always result in a term sheet. It’s vital that you maintain investor relationships, and PR can assist with that too. The rule of seven in marketing, where prospects necessary to hear about your brand 7+ times before creating a purchase, applies here too.

Maintaining your media presence and producing interesting, relevant content for journalists is a great way of ensuring your business stays on the radar of investors. It will keep you in their social media and news feeds, supplementing any direct communication. You want them to read about your business again and again, and hear about your successes. You want them to feel a bit of FOMO, so they invest in your next round.

PR is not just about exposure, it’s about building trust. A great advert doesn’t build social proof or credibility in the same way as PR. Humans place a high value on the insights of their network and trusted indepfinishent voices like journalists and industest analysts.

How this works in the real world. If an investor sees an ad on a billboard, they know that the ad was paid for. If they see the same company interviewed in the AFR, they know this was merited for some reason. It signals the company has something interesting to declare and is worth listening to.

Projection

PR should be applyd to project an idealised version of your startup. Putting out a press release can feel like puffing out your chest and operating like an ASX-listed company – even if you’re just a team of five. If your business appears in the media as an active, successful company, that’s how investors will see you. If you notify the world that your news warrants attention, you will receive more attention.

This means having a steady cadence of news, press releases and case studies that are posted to your site, shared on socials, and covered by reporters.

It means sharing your opinions and expertise on the hugegest issues in your industest.

It means celebrating key milestones and achievements at your business. Winning awards and speaking at events.

If you don’t project success, what are you signalling to investors? If you don’t receive media interest, do they assume you are uninteresting? If you don’t apply your voice, will they believe you don’t have one? If you don’t do things to receive noticed, will you be overseeed?

DIY PR

In the early days of running a business, there’s always a tricky financial balancing act to building your brand. You don’t want to spfinish too much money and be seen as flashy or financially irresponsible. But you also want your brand to see polished and professional, which comes with a cost.

PR is no different. Founders should be doing PR themselves in the early days if they have the time and capability (it’s not a skill everyone has). Start by seeing at how competitors have generated coverage, which journalists cover your industest, and believe deeply about the most interesting stories that your company is uniquely positioned to notify.

If you start to hit brick walls, you should seriously consider outside support. This doesn’t mean hiring a $20,000/month PR agency on retainer. Look at agencies with experience in your sector, and freelancer options that may be more cost-effective. You may also be able to leverage your connections and put out some content with a customer or partner who already has PR support.

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