You can be on Entrepreneur’s cover!

Why Startups Should Invest in Public Relations Right Now Should you wait until you fundraise to invest in PR? The short answer is a resounding no. Here's why.

By Hannah Cranston

Key Takeaways

  • Make PR the foundation of your fundraising strategy to unlock doors to investment, opportunities, and long-term success.
  • In the world of startups, having a robust PR plan from the outset is not a luxury — it's a necessity.
entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Entrepreneurs often find themselves at a crossroads, deliberating over the right moment to initiate key strategies. As an agency owner who works with many startups, I'm often asked when the "right" time is to engage PR services. Should you wait until you fundraise before investing in PR? Is it crucial to close your round before bringing PR into the picture? Isn't PR for more well-established businesses? The short answer is a resounding no.

The temptation to postpone PR activities until the budget is more robust is understandable but also a strategic misstep that could cost valuable opportunities. Initiating a PR plan from the get-go is beneficial and essential for startups looking to stand out in the competitive landscape of fundraising.

Related: 5 Secrets Your PR Team Is Not Telling You

Perception is everything

In the world of fundraising, how investors perceive your startup can make or break your chances of securing the investment you need. Investors are not merely putting their money into a product or service; they're investing in the entirety of your brand, your vision, and the potential they perceive.

A strategic PR plan is instrumental in shaping this story. It weaves a compelling narrative around your startup, highlighting its uniqueness and promise, capturing the imagination and confidence of potential backers. This narrative doesn't just reach potential investors; it resonates with them, aligning your vision with their investment goals.

Building credibility before the pitch

Investors are inundated with pitches, each clamoring for attention and funding. Before investors write a check, they look for evidence that your startup is a credible and viable contender in its market. Effective PR showcases your achievements, milestones and the unique aspects of your business, creating a layer of credibility and trust that precedes formal pitch meetings. This pre-built credibility can be a decisive factor in the competitive world of startup fundraising, especially in the current climate.

Related: Raising Funding in a Downturn Isn't Impossible — I Did It (and You Can, Too).

Creating momentum and visibility

A well-executed PR strategy doesn't just put your startup on the radar of potential investors; it generates buzz and visibility, creating a sense of momentum around your business. Investors are drawn to startups that are promising and perceived as on a trajectory toward success. Building an excited and loyal audience around your business can do just that! It signals to the market and potential investors that your company is on the move, achieving milestones and garnering attention — a powerful psychological lever in the fundraising process.

Opening doors to networking opportunities

One of the less obvious but equally valuable benefits of PR is its ability to facilitate networking opportunities. PR can open doors to potential investors directly. A strong PR campaign puts your brand in the limelight and can lead to fielding incoming inquiries from interested investors rather than relentlessly pursuing meetings.

This shift from outbound to inbound interest can be a game-changer, allowing you to spend more time refining your pitch and operations and less time in the constant hustle for attention. Effective PR places your brand in the spotlight, attracting not just potential investors but also partners, customers and top talent. These connections are invaluable, providing support, resources, and collaboration opportunities that extend well beyond the initial fundraising phase.

Leveraging name-brand recognition

PR is about building and enhancing your startup's brand recognition. In a crowded marketplace, being a recognizable name can significantly influence your fundraising efforts. Investors are drawn to brands that they can trust and believe in—the kind of trust and belief that a strategic PR campaign can help foster. Not to mention, a recognizable brand can attract even more media attention and partnership opportunities, multiplying the effects of your initial PR efforts and laying a strong foundation for future growth.

Don't wait to start PR

Integrating a PR plan into your fundraising strategy isn't just about getting your name out there; it's about creating a strong, positive perception of your startup. This perception can influence investor confidence, attract additional interest, and position your startup as a leader in its field. Waiting until after you've secured funding to focus on PR means missing a critical opportunity to shape how investors and the market view your startup. It's an investment that pays dividends.

Hannah Cranston

Entrepreneur Leadership Network® Contributor

CEO of HCM

Hannah Cranston is CEO of HCM, a PR & communications agency that helps changemakers share their story with the world. HCM's clients have run for President, developed a TV series, created a YouTube channel with millions of followers, interviewed the top business leaders in the world, and gone viral!

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

A Non-Profit Newspaper Published a Column Criticizing Facebook. Then Meta Blocked All of Its Posts.

Facebook's communications chief said that the posts were removed because of "a mistaken security issue."

Business News

Elon Musk Reveals When Tesla Will Release Its First Robotaxi

Tesla's CEO says the fully autonomous Tesla taxi is arriving soon — in 122 days.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Walmart Shoppers May Be Eligible for $500 After Settlement

Walmart shoppers who purchased weighted goods or bagged citrus in the U.S. or Puerto Rico from late 2018 through early 2024 might be eligible for a share of a $45 million settlement.

Starting a Business

How to Start a Gift Basket Service

You've been complimented on your crafty and unique gifts for years. Turn your talent into a hot new business with a gift basket service.

Business News

Total Solar Eclipse 2024 Live Feed: Where, When and How to Watch the 2024 Eclipse

Here's what to know about the total eclipse 2024 and a live stream from NASA.