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- The Colab Brief - 121: PR for VCs to W-I-N 🏆
Over the past several months, we’ve noticed an interesting influx of VC firms looking to enter the PR game.
The public relations function is nothing new for big legacy firms (heck, Andreesen Horowitz even created their own media company to self-publish stories. RIP, Future.). But, we are seeing many more small to midsized firms trying to establish themselves and using public relations as a lever.
We, of course, think this is smart.
And today, we’ll break down why.
Read Time: 2 minutes.
The Golden Era of Tech PR 💰
Public Relations used to be a function reserved for portfolio companies. We were typically brought in by a firm to help announce a VC round and give new founders guidance on how to obtain media interest for their solution. We’d do a large push around the funding announcement, get a ton of coverage, because - funding - and everyone was happy.
Then, the media shifted.
It suddenly started to take more to get outlets like TechCrunch interested in a story. They no longer really cared that you were raising money - I mean, who wasn’t? It started to matter who your investors were. It became much harder for smaller, less recognizable firms to get the same attention as their splashier counterparts, even if the rounds and companies were comparable.
Today, the pursuit of recognition as a firm is more challenging than ever. It takes a carefully crafted strategy to insert yourself in a landscape infiltrated by “cool” capitalists. So, how can PR help?
It Creates Visionaries 🔮
Public relations allows relatively unknown partners to predict the future, educate, and discuss trends, all within the public eye. There is simply no better tool for creating visionaries and thought leaders than a strategic PR program.
You can self-publish, create content, write on a blog, or tweet daily on X, but the credibility established by even ONE well-written piece in the media can create an inflection point and open your other content to entirely new audiences. Being the younger, smaller, less traditional VC on the block suddenly becomes an advantage - you have the ability to address and speak on topics other firms may pass up.
Reporters love an opinioned investor.
It Gives Personality 😉
Go to nearly any VC firm’s website and tell me what you see. A lot of text. A few logos. Maybe an outdated blog. The template for all firms seems to be the same. It’s really hard to convey personality when there is so much official business to get across.
But personality is important. The vibe of the firm sets the tone for the types of businesses that will be interested in working together. Investing is competitive - there isn’t room for everyone at the cap table. If you’re not leading the round and you’re not the biggest name, how can you differentiate yourself? Well, third-party credibility certainly helps.
If your investors have been out in the market, talking to reporters, giving advice, and showing thought leadership, those pieces can make a difference as founders assess who they want in the round. Developing a unique reputation for the firm can make a difference when pen meets paper.
A Rising Tide Lifts All Boats 🚢
A media-savvy venture firm can extend press success to its portfolio companies. An investment group that establishes solid connections with reporters isn’t afraid to be a bit bullish in their opinions, and cultivates a personality in the media is one that will get more attention when investing in a round.
It’s helpful to all parties when the funding firm already has a leg up in the media. Does it always guarantee coverage? Of course not, but everyone uses Google, and when you look up a name and see several recent, interesting pieces of press, it certainly speaks volumes.
In the coming weeks, we’ll highlight a case study of an independent firm that used PR to land hits in The Information, Axios, and TechCrunch, despite being smaller, and less recognizable than the Silicon Valley VCs.
PR isn’t just for companies that sell something. It’s also extremely helpful for organizations that simply want to differentiate themselves in a crowded sector. It’s a unique tactic that can be leveraged to the benefit of reporter, investor, and portfolio companies.
Until next week -
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