Raising investment is a milestone for any business and most founders want to make the most of it by announcing their funding round in the media.
Achieving press coverage does help businesses to gain visibility before other potential investors and customers. Often it will be their first contact with the media so it is an opportunity to introduce the business to key journalists and start to build their profile.
PART 1: WHAT TO INCLUDE IN A FUNDING RELEASE
Drafting a press release can seem overwhelming and founders often don’t know where to start. However these type of stories follow a similar structure and typically include some key elements:
- The amount raised and the names of the investors.
- What the company does and what sets it apart from others in the field.
- Background – who founded it and when, and where it is based.
- Progress to date – such as business growth or milestones achieved.
- What the funding will be used for and future goals.
- Market size or relevant trends.
- Quotes from the founder and investors.
- A photograph of the founders or the team and product shots if appropriate.
Once you’ve gathered this information, you are all set to draft a release. Let’s look more closely at each of these areas.
Include the amount raised
Don’t be tempted to leave out the figure as it is central to the story and editors may refuse to use it otherwise. Founders may think that leaving out the figure suggests they have raised a bigger sum but in fact it usually gives the opposite impression. And don’t try to inflate it by adding in grants or earlier rounds. Better to be transparent if you want to build good relationships with journalists.
Explain what the company does
This is often the most difficult aspect for founders, especially those with innovative products where there is no established way to describe them. It is tempting to use technical jargon which may be fine for the trade press, however general business titles and national newspapers generally won’t use this type of terminology and will strike it out or replace it with their own choice of words. Even if you are targeting a very technical audience, try to find a simpler way to explain your product or services for these titles.
… and what sets it apart
There will almost certainly be other businesses operating in your field so what is different about yours, as this is a key consideration for investors and customers alike. It may be that your platform is the only one that offers a particular feature or a complete end-to-end service, or is the market leader in a particular area.
Give the back story
Explain who founded the company, when and why. Many founders develop products to solve challenges they have experienced at first hand so including these details will usually highlight the need for the product and make the story more compelling.
Highlight your achievements to date
Try to provide evidence to show that the business is gaining traction and achieving its goals. Depending on what stage it is at, that might be running successful trials, launching a new product, breaking into a new market or other milestones. If you have built a sizeable client base, be sure to mention this and any high-profile names. Include growth figures where possible to support your case – for example if you’ve increased revenue, customer numbers or the size of the team.
Market trends
Some companies like to include market research figures showing the total size of the market. However often what is more convincing is to mention any events or trends that will boost uptake of your product, for example skills if shortages are driving demand for industrial robots or new regulations will encourage recycling.
Quotes from the founder and investors
Rather than repeating what has already been said, quotes should add depth to the story.
They are an opportunity to emphasise key messages or to make claims and endorsements that otherwise be edited out. Without firm proof, the press are unlikely to say that a company is ‘redefining the landscape’ or ‘ahead of the competition’, yet it is perfectly acceptable for an investor to express this opinion in a quote.
Avoid empty platitudes such as thanking others or saying how delighted or thrilled you are as the risk is they will be not be used, especially if there are several quotes in the story. Do try to limit the number to two or three maximum though admittedly where multiple parties are involved, this can be difficult.
Photography
Most online publications have a format that requires a picture with every story so providing suitable photos makes it easier for them to cover it. Generally they need a landscape-shaped photo though it can be useful to have an upright option. Suitable photos to accompany a funding release include a pic of the founders, the management or the entire team if it’s only a small firm, plus any product photos if appropriate. Make sure you own the copyright though – some publications will ask you to confirm this.
PART 2: TIMING AND OTHER TIPS
When to send out a funding release
As a former journalist, I would recommend issuing a release as soon as practicable after the deal has completed. News, by definition, has to be timely. Leave it too long and word is likely to get out via social media, or there may be amendments to the records on Companies House, both of which can easily spotted by a journalist doing a quick online search. The story then becomes old news and editors are reluctant to use it. Therefore it is best to have a draft ready before the round finally closes.
Ensure all parties involved in the deal are aware of the timing and ask them not to disclose anything before then. Agree a time when you can all post the story to your websites or social channels – ideally 12 to 24 hours after sending out the story to give the media the chance to use it first.
Targeting media channels
There is usually a range of publications that will cover funding rounds and some titles aimed at the tech or start-up scene specialise in this type of story. It is also worth sending to trade magazines that cover particular sectors such as IT, manufacturing and HR, and don’t forget the regional business press as outside of London, these titles are often very well read. Achieving coverage in a national news title is more difficult unless it is a large sum or a very strong angle.
If you do want to target a national newspaper or specific tech magazine, it is possible to offer them the story on an exclusive basis. However this can be time consuming and you are likely to be left in limbo while they consider when, and if, to publish so you need to be clear about what the objective is.
Write it in media style
When drafting a release, try to stick as closely as possible to journalistic style. Publications general aim for clear and objective reporting that is accessible to all of their readers. Therefore use plain language and let the facts speak for themselves – don’t make unsubstantiated claims and avoid medical or IT terms unless it is a trade magazine. Otherwise the story will have to be rewritten which is time consuming and makes it harder for journalists to use. And if they are interpreting technical terms, they may not always rewrite it in a way that you would like or feel is entirely accurate.
Leave no unanswered questions
Once you have drafted the story, it is time for the final checks. Make sure you have included all the key facts, otherwise journalists will have to contact you or research online to find the answers and may not have time before deadline. Common omissions are facts such as the location of the company and the number of staff.
Beware of any discrepancies and gaps in information that raise further questions or suggest the story doesn’t quite add up. Or is there something that could be read in the wrong way? For example to say the funding as ‘badly needed’ could imply the company was on the brink.
In some cases there are things companies don’t want to mention – maybe one of the founders departed or the CEO was sacked – and there is usually no need to do so, provided you tell the story in the right way. What you do want to avoid is allowing clumsy wording to inject a note of doubt in an otherwise positive story.
Check that everything is clear
Ask others to read the release to highlight any scope for errors or misunderstandings. Is it clear who the investors are and what the business does? As editors are likely to rewrite part or all of the story, there is always some potential for mistakes to creep in. if there is something that is not quite clear, or the story is overcomplicated, the risk is greater still – especially in the age of AI.
Founders are sometimes so keen to announce the deal that they insist on sending the story out even if something doesn’t quite read right. Yet paying attention to these finer details will help to reduce the risk of errors, ensure the PR process runs smoothly and the story achieves maximum impact.
If you need help with a funding announcement why not give us a call?