Public Relations (PR) is essential for driving a startup’s success at every stage. From attracting early users and capturing investor interest to scaling into global markets, strategic PR can significantly boost a startup’s growth and impact.
In a guest column for AIN, Marija Abdelhalim, PR Strategist and founder of COMMA PR agency, ex-journalist, explores how PR can effectively support startups through each phase of their development.
While traditional businesses may only seek the help of professional PR specialists at certain stages of their development, a startup without a strong PR strategy will find it incredibly difficult to reach an international level and nearly impossible to catch a unicorn.
If journalists aren’t writing about the project, it can raise suspicions among potential investors and users. Additionally, it will be challenging to attract the much-desired star talent to your team, as talented candidates may doubt the stability and prospects of a company that is not well-known.
Yet, different stages require different tactics. Let’s go through 4 startup stages: seed, early, growth, and expansion (we will skip the pre-seed), to have a better understanding of what tactics regarding PR to choose each time.
Seed and Early Stages
At the seed stage, startups focus on confirming market demand to ensure their product or service meets a real need. Gaining financial support from various sources, such as angel investors, grants, and crowdfunding, is crucial to developing and validating the business model. This stage involves verifying hypotheses with a working prototype, allowing for adjustments based on early user feedback and market response.
Additionally, finding the right market solution is essential for long-term success. Startups must make the right contacts, including potential partners, mentors, and industry experts on this stage. Relying on multiple financial sources not only provides stability but also offers different perspectives and support networks, increasing the chances of success.
PR – a tool to gather market’s feedback
At the seed stage, the primary focus of the PR is on acquiring initial users and gathering their feedback. This feedback is crucial for identifying precise market problems and guiding future product development.
Here, PR helps facilitate this process effectively and affordably, since media relations focus on editorial articles (unpaid). By generating media coverage, startups can reach a wider audience, attract early adopters, and gain valuable insights into their product’s performance and market fit.
Key PR Objectives at Seed Stage:
- Acquiring Initial Users: PR campaigns can help spread the word about your startup, driving traffic and interest from potential users.
- Receiving Feedback: Media coverage can prompt user engagement and feedback, essential for refining your product.
- Effective and Affordable: PR offers a cost-effective way to build awareness and credibility in the market.
At the early stage, startups aim to secure their first round of venture capital funding, which is crucial for scaling operations and enhancing product development. Crafting a minimum viable product (MVP) becomes essential, as it allows startups to demonstrate functionality and potential to both investors and early customers. Establishing a sizable customer base is a priority, ensuring a steady stream of monthly revenue that showcases market demand and product viability.
The main focus of PR shifts to investor relations.
What is more, proof of durable revenue streams is critical at this stage, as it reassures investors of the startup’s long-term potential. Startups must present clear return on investment (ROI) metrics to their investors, highlighting profitability and growth prospects. Demonstrating strategic market positioning helps build investor confidence and lays the foundation for future funding rounds and expansion.
What challenges do PR people face at these stages?
The biggest challenge – PR must be measured at this stage. Tip from my experience: invest in PR measurement and media monitoring tools that give metrics of your campaign based on data they have. Also, data about user growth from the product marketing team will be useful.
Besides, there are a few more obstacles we are facing:
- Limited Resources
Startups often operate on tight budgets, limiting the funds available for comprehensive PR campaigns. The impact of PR must be maximized. Viral campaigns and media attention will help here a lot.
- Pitching
New startups lack an established track record, making it difficult to gain media coverage and trust from potential users and investors. PR people must work hard to build credibility from scratch, leveraging testimonials, early success stories, and strategic partnerships.
- The Expectations
Startups often have high expectations for immediate results from PR efforts. Here comes the educating of clients on the long-term nature of PR and the gradual build-up of brand awareness and credibility.
Creativity, strategic planning, and adaptability is essential for the success of PR.
Growth Stage
During the growth stage, startups focus on scaling to larger markets to increase their reach and revenue potential. This involves expanding their customer base, entering new geographic regions, and enhancing their product or service offerings. To support this expansion, raising additional funding from diverse sources, such as venture capital, private equity, and strategic partnerships, is crucial.
Expanding the team with the right talent is another critical focus. Startups aim for healthy growth by building a robust organizational structure and fostering a strong company culture.
PR: for investors and talents
As startups move into the growth stage, the focus shifts to demonstrating market validation and securing investment. Investors, including venture capitalists (VCs) and angel investors, need to see that your product addresses a real market need. PR provides the external validation necessary to build investor confidence, often through endorsements and confirmations from reputable journalists.
Key PR Objectives at the Growth Stage:
- Market Validation: PR helps showcase that there is a genuine demand for your product, supported by positive media coverage.
- Securing Investment: Effective PR strategies can make your startup more attractive to investors by highlighting traction and market potential.
- Journalistic Endorsement: Positive reviews and features from respected journalists can serve as powerful endorsements for your product.
During the growth stage, we face several challenges as working to enhance the visibility and reputation of a rapidly expanding startup:
- Rapid Expansion
As the startup grows, it can be difficult to maintain consistent messaging across all channels. PR specialists must ensure that the brand’s voice and values are communicated clearly and uniformly, even as new products, services, or markets are introduced.
- Increased Scrutiny
As the startup gains more attention, it faces increased scrutiny from the public, media, and competitors. The team must be prepared to manage negative press, address criticism, and maintain the startup’s reputation during challenging times.
- Investor Relations and Talent Retention
With the first round of venture capital funding secured, PR must now focus on maintaining strong relationships with investors. This involves regularly communicating the startup’s progress, showcasing ROI, and managing expectations to ensure continued support.
Moreover, attracting top talent is crucial for scaling, and PR plays a role in shaping the startup’s employer brand. A startup must highlight the culture, mission, and growth potential to attract skilled professionals and retain existing employees.
Expansion Stage
At the expansion stage, startups aim to scale their operations and enter larger markets. PR becomes instrumental in building brand awareness and attracting the necessary resources for scaling, including top talent and additional investment. Establishing a strong media presence can significantly enhance a startup’s visibility and reputation on a global scale.
Key PR Objectives at the Expansion Stage:
- Brand Awareness: PR campaigns can boost your brand’s visibility, making it recognizable in new and larger markets.
- Attracting Top Talent: A strong media presence can help attract skilled professionals looking to join a reputable and promising company.
- Securing Additional Investment: Continued media coverage and positive brand perception can make it easier to attract further investment.
- Global Recognition: Effective PR strategies can position your startup as a key player in the global market, fostering international growth and success.
What challenges to expect?
- Hard to manage Consistency
Maintaining consistent brand messaging across various regions and platforms is crucial. PR specialists must ensure that the brand’s voice, values, and positioning are coherent, even when tailored to different markets. This consistency helps build a unified global brand identity.
- Competition
Entering larger and more competitive markets means facing well-established players. PR specialists must develop strategies to differentiate the startup from competitors and highlight its unique value propositions. This often involves creative storytelling and innovative campaign approaches.
As we see from the article, PR for startups is not for the weak ones. Yet, it is a powerful tool that can significantly impact a startup’s success at various stages. By understanding and leveraging PR effectively, startups can acquire initial users, validate their market presence, secure investment, and achieve global recognition. Investing in the work of a strong PR team will pave the way for sustained growth and long-term success.
Author: Marija Abdelhalim,
PR Strategist and founder of COMMA PR agency, ex-journalist
