How Startups Can Use Marketing To Attract Venture Capital Funding
When finding venture capital partners, the oft-used quote “luck is when opportunity meets preparation” serves as a wise mantra. “Lucky” startups that attract VC funding have gone beyond creating and implementing a business plan. They’ve organized assets, learned about their ideal investor, and purposely networked to create opportunities to build mutually prosperous relationships.
A critical element of connecting with venture capitalists is executing a strategic marketing plan. You’ve likely created a marketing strategy to connect with your ideal customers. Marketing for venture capital is similar to consumer marketing but requires a different level of preparation for success.
Discover how digital marketing for venture capital can connect you with an investor ready to take the business journey with you.
Cultivate Your Brand
If you haven’t done so already, designing your brand is crucial to all aspects of marketing. It guides your tone and imprints your values and market presence in the minds of your audience. Not only will a well-formed brand build a trusting relationship with customers, but it gives investors a way to understand your business
Aside from showcasing your mission, vision, and values, a strong brand presence should cultivate confidence in potential investors. They want assurance their investment in your company will be returned, and a startup that can competently build trust with its customers increases that likelihood.
Know Your Ideal Investor Inside And Out
Remember when you studied your potential customers inside and out? You strategized, surveyed, and got to know the people your business exists to serve. You lovingly built your customer avatar and knew them better than you know yourself. You know their desires, worries, and how you can save the day.
It’s no different when marketing for venture capital. Just as your business isn’t right for every customer, not every investor is a good fit for your startup. Instead, focus on attracting investors who appreciate your mission, vision, and values and believe in your company’s potential. The beauty of technology is that you can connect with potential investors worldwide, but if you find them in your backyard, that’s even better.
Networking as Marketing for Venture Capital
You have to create opportunities to connect with potential investors through networking. Connecting with local venture capitalists is ideal since they are often passionate about building local communities through supporting commerce. You’ve determined your perfect investor, so discovering where to find them should be a breeze. Look for Meetups and clubs where they gather, and make it a point to attend meetings when possible.
Venture capitalists tend to be ardent users of social media. Connect with them online on Facebook or LinkedIn groups or by following them on their preferred platforms. Engage with their content, share their posts, and leave thoughtful comments where appropriate.
Whether online or in person, there’s a steadfast rule of networking that should drive every interaction. Networking IS NOT about what a venture capitalist can do for your company. It’s about building relationships and offering value, sometimes long before an appropriate opening to pitch your startup materializes. The VC/startup relationship requires a foundation of trust to succeed. Even though it would be great to receive funding now, building a solid foundation for a mutually beneficial future will pay off in the long run.
Establish Your Market Presence
Market presence is the “preparation” element of the equation. Strategic marketing for venture capital means showing your ideal investors what they want to see. They want to know you’re ahead of the curve, about to cause a commotion in your industry. They want to see you show up, engage, and have a leadership-like presence in the online space. You also want to make it easy for them to do your due diligence.
How do you establish that? Through your content marketing.
Build a beautiful, optimized website. Make it mobile-friendly, and have an investor relations page with information specifically for investors.
Consistently publish blog posts to demonstrate your cutting-edge take on developments in your industry. Providing valuable content will help venture capitalists understand how you stand out from competitors.
Get on social media. Post, network, engage, and comment with other business pages and individuals making waves in your industry. You never know who will see your comment or post and want to learn more.
Segment Your Marketing
Digital marketing for venture capital needs different messaging than the rest of your marketing. Segment your email marketing so you can send relevant updates to potential investors without spamming them with consumer-focused messaging. (However, many VCs will subscribe to all your marketing to see how you communicate with potential customers.)
Create marketing materials, such as the investor relations website mentioned above, to direct potential investors when you’re networking. Review your marketing assets to ensure all investor information is correct, current, and captivating.
Madison Taylor Marketing is passionate about connecting startups with their ideal investors through strategic and targeted marketing. Contact us today so we can assist you in finding funding to launch your business forward.