How to use public relations to attract investment - 5 strategies

At The PR Hub, one of the most exciting aspects of our work is closely collaborating with rapidly scaling businesses, often driven by technology and industry disruption and driven by a desire to make change for the better. We help them develop their key messaging and overall approach to PR to ensure it supports them in achieving their business objectives.

For some of these businesses, one of those objectives is catching the eye of potential investors to raise capital. We also work with amazing investors, such as high-net-worth individuals, venture capitalists, and crowdfunding platforms, which gives us a direct and unique insight into what different types of investors are looking for and what grabs their attention? to secure investment.

Not every business is destined to become a tech unicorn, list on the stock exchange, or scale to be acquired. However, what all businesses have in common is that they need capital to grow and thrive. Regardless of the industry, if you’re looking to bring in external funding, investing in building your public profile is a must.

The question then becomes, how do you make your business stand out so potential investors can see your worth?

Embrace and amplify your story and expertise

A consistent response I’ve heard from investors about one of the reasons they are attracted to a business is, “The founder is active in the business and recognises that their story and commitment to raising the profile of the business is critical to success.”

Maria Halasz, CEO of venture fund Stride Equity, looks for founders who clearly articulate their motivation and passion, proudly own their story, and showcase the depth of their experience and connection to the business they’ve created.

Start by asking yourself, “What is your story and what is your why?”.

Don’t shy away from your personal brand and the unique opportunity it presents to differentiate your business in the market. In the past decade, I’ve worked with over a dozen founder-led businesses to help them understand and craft their unique stories, which have played a significant role in their successful sale and exit years later.

Recognise you’re a thought leader

As a business owner immersed in your industry and passionate about your work, you have insights that others will benefit from. Position yourself as a thought leader in your industry. Share your insights, predictions, and opinions on industry trends through blogs, opinion articles, podcasts, and speaking engagements. Research and make a list of media publications relevant to your industry, noting the journalists who cover the news. Challenge yourself to reach out to them and let them know a little about you and what insights you have to offer for future stories.

These efforts build your credibility, attract attention to your business and reinforce your personal commitment to backing your business and achieving success.

Know your target audience and align your PR strategy

Understanding your different customer segments and what appeals to them most is a crucial part of PR. At The PR Hub, when we first start working with clients we ask them to explain their business and the problem it solves in at least three different ways: to a potential end-user, to a friend at a weekend BBQ, and to a potential investor. Each scenario has a different interest in the business, and where one pitch might be perfect for one audience, it may not be for another.

Investors are not a homogenous group. If you’re considering seeking investment, first decide what type of investors you’re looking for and why. A retail investor via a crowdfunding campaign is likely to be motivated by different messages and media compared to an institutional investor or venture capital firm.

Once you’ve sorted that out, you can decide on the format, media outlets, tone and language to use.

Share your growth story

While your founder story and building awareness of your personal expertise is essential, so is sharing your business growth story. Your growth story is the information that proves to investors that your business has the potential to make its mark and deliver on their expectations.

A compelling growth story can come from various aspects of the business. Leadership hires, significant customer wins, awards and major milestones like a substantial uplift in customer numbers or the acquisition of a business that will support an increase in market share and size are all key pieces of your business that have the potential to make an impact with investors and media.

Business awards that focus specifically on numbers are always of interest so if you’re comfortable sharing metrics such as revenue growth or user acquisition rates, go for it.

Another approach to consider is building out the spokesperson focus in your business so that key people in your leadership team also get the chance to share their story and expertise. This not only highlights the size and depth of your team but also reinforces that the business is not just about you as the founder. If you’re like the majority of founders I’ve worked with who are introverted and don’t like the spotlight, then I’m sure you’ll enjoy reading this.

Network strategically and build relationships

Building relationships with potential investors is just as important as building your business. Attend industry events, join entrepreneurial groups, and network with other founders and investors to develop your network and gain useful insights into what investors are looking for. These first hand learnings will provide you with more insights into how to best structure your approach to PR to ensure you’re laying the solid foundations for a business that is investor ready.

This article first appeared via Kochies Business Builders as part of my monthly series. For more please DM or email me [email protected]