How a communication strategy can help secure investment in your tech brand

By Lorraine Emmett, Managing Director and founder of tech B2B PR agency, EC-PR

When looking to invest or acquire a company, investors require foundational pieces of information that are quite frankly essential, and all too frequently missing from tech companies’ pitch decks. This is most likely due to the misplaced assumption that the investor has comprehensive knowledge of the sectors they invest in. This is not necessarily true, and they certainly will not have a comprehensive knowledge of your particular business. They will, however, expect you to demonstrate that you know your business, your customer, and your market thoroughly. The missing, apparently obvious, yet critical, slides include:

1. What your business sells.
2. How this is identifiably better than alternative offerings.
3. How you acquire new customers.
4. How long you keep your customers.
5. How much each customer is worth.
6. How long does it take to onboard a customer.

Investors and acquirers want to know this because it shows you understand that you are in business to make money and not simply pursue a hobby.

Drawing in investment to your business requires you to have a deep understanding of your prospects, current customers, and the messaging required to reach them. Number one and two above in marketing language would be called a value proposition – they are your foundations upon which everything is built.  It is how you decide what R&D to pursue and what expertise to invest in to stay ahead of your competitors.  A robust value proposition sets you apart from your competitors, resonates with your prospects and customers and gives everything you do clarity and focus.  Number three – how you acquire new customers – is relating to buyer psychographics, their wants and needs, channels, information sources they trust and messaging, what you say and when you say it to optimise engagement.

A strong value proposition, customer insight and structured messaging are the key pillars of a communication strategy. A robust communication strategy will enable those in leadership positions to maximise their limited resources and generate significant impact across their business. Ultimately, it will empower your business to outperform its size and resources.  And that’s the magic ingredient that investors are after – the potential to overperform.

A communication strategy is critical during early funding stages

The size and scope of the investment you need depends on various factors. Primarily, you must have a firm grasp of the type of funding you are seeking to acquire. These range from seed, series A, B, C, and D funding, representing different stages of the funding process.

A communication strategy demonstrates its highest value when implemented early in the investment process, typically during Series A and B funding rounds. Series A funding is sought after by startups aiming to scale their operations. This stage is pivotal for proving product-market fit and initiating the development of a robust go-to-market (GTM) strategy.

At its heart, Series B funding requires the demonstration of GTM fit, thus enabling heavier investment in business strategies that have already proven to be successful. However, in practice, the situation is much more nuanced. Investor preferences vary significantly across industries, and different companies may excel in distinct areas during the Series A and B funding process. The key is to demonstrate your business’s evolution since the previous funding round and its potential for further growth. This is where a communication strategy can help weave the components together of between Series A and B funding rounds.

Understanding stakeholder contributions

To craft a communication strategy that will secure buy-in across your company, it’s wise to involve your most senior leaders – those who know your company and its commercial imperatives, the market, and your customers. It’s vital that the following are all aligned if you are to attract investment. A unified business is a strong business. To ensure that your communication strategy effectively attracts the right investment, it is imperative that key leaders across various departments are aligned and part of the communication strategy development process. The collaboration and synchronisation of the following leaders are crucial; without their buy-in to the communication strategy, investment will prove increasingly difficult.

1. Board champion. An individual who champions your vision at the highest level, ensuring that your communication strategy aligns with the overall investment goals and objectives of the organisation.
2. Your customer services lead. They hold valuable insights into customer preferences, feedback, and concerns. Aligning with them ensures that your communication strategy resonates with would-be investors and addresses their needs effectively.
3. Commercial lead. This person is often critical to attracting the right investor. With expertise in commercial strategy, this leader will help to ensure that your communication efforts are aligned with revenue goals and market positioning, maximising your potential for attracting investment.
4. Product development lead. Collaborating with this team ensures that your communication accurately reflects the unique features, benefits, and value propositions of your products or services, strengthening your investment proposition significantly.
5. Marketing lead. Having the support and alignment of your marketing lead is paramount. As they are responsible for crafting and executing marketing strategies, their buy-in ensures that your communication efforts are cohesive, targeted, and impactful in reaching potential investors.
6. Sales lead. You’ll need their collaboration to help ensure that your communication strategy supports their efforts in converting leads and driving revenue growth, ultimately enhancing your appeal to potential investors.

Enhancing your company’s visibility among potential investors

A robust communication strategy plays a pivotal role in bolstering the business plan by cultivating new business opportunities from both existing and potential customers. For any business looking to secure investment, the foundation lies in establishing a dynamic sales funnel brimming with qualified opportunities. Central to this is the art of crafting a compelling message that not only resonates with your target audience, but also captivates the attention and interest of potential investors. Here, we underscore the significance of the “Like Me, Know Me, Trust Me” principle for investors across various facets of your strategy.

Take, for example, the value a thought leadership campaign can bring when looking to gain investment. These campaigns are meticulously crafted to showcase your company’s knowledge, insight, and expertise across multiple channels. Investors seek to perceive their cash injections as rocket fuel propelling an already thriving company further into success.

By integrating a thought leadership strategy into your overall approach to attract investment, you ensure that your expert opinion not only offers insightful perspectives, but also propels specific discussions forward, demonstrating your company’s ability to lead and innovate in its industry. Thought leadership that is visionary, knowledgeable, and trustworthy captures the attention and interest of investors, positioning your company as a focal point for their attention and consideration.

Investment decisions hinge significantly on the commercial context. Crafting an effective communication strategy is vital to enhancing visibility and establishing authority within your target investor base. Ensure that your successful projects, partnerships, and client relationships remain at the forefront of your digital marketing campaigns by maintaining cohesion across all channels. These should all be rooted in defined commercial goals and communicate your business plan to potential investors.

Identify your compelling benefit

Convincing others to invest in your business is a formidable challenge, especially when your value proposition is not clearly aligned with their needs and goals. To overcome this hurdle, it is essential to pinpoint the most compelling benefit you offer and make it the focal point of your proposition. Once identified, articulate why this benefit holds significant value for potential investors. However, achieving these crucial steps hinges on having a robust communication strategy in place from the outset—one that defines your target audience and outlines effective methods to engage with them.

The importance of differentiation

To secure the right investment, your business needs to set itself apart from the crowd. As mentioned before, thought leadership can play a critical role in doing so. Through building credibility, investors are more likely to trust and be attracted to businesses led by individuals who are knowledgeable and respected in their field. This credibility will be further enhanced by targeted media opportunities. Those wanting to invest will see promise through gained visibility and exposure. Putting your services and products at the forefront helps to put your company in view of potential investors who may not have otherwise heard of you. These continued media opportunities shine a light on you and your company. It is vital that you demonstrate that your company is actively engaged with the public, transparent about its activities, and has a solid strategy for growth. And finally, look to showcase successful partnerships and collaborations. This is essential for attracting investment as it enhances credibility and expands market access. Your partnership can vouch for you and help create investor confidence through these strategic alliances.

A robust communication strategy holds immense importance in helping to mould investors’ perceptions of your company and can greatly influence your capacity to attract the necessary investment. Effective PR efforts are indispensable for establishing credibility, ensuring visibility, and fostering meaningful investor relationships.

Without a robust communication strategy, your company may find it challenging to garner trust and confidence from potential investors. Additionally, the absence of strategic communication initiatives could result in limited visibility within your industry and hinder your ability to showcase your key achievements and successful partnerships, ultimately impeding your company’s growth trajectory. A communication strategy is an essential piece of the puzzle to position your company positively, enhancing credibility, and creating valuable opportunities with investors and push you forward to the next stage of business growth.

Jessica Weisman-Pitts

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.