In their new Igniting Start-ups with Investor Insights report, Singapore-headquartered PR and communications firm SPAG stated that having a communications roadmap plays an important role in the success of a startup fundraising process.
According to the report, while the COVID-19 has disrupted startup investment in 2020, there are sectors that experience a surge in popularity this year: fintech, edutech, and health tech. However, startups still need to pay extra attention to setting themselves apart and securing the attention of investors with the right communications roadmap. As highlighted in the report: “A surge in the quality and quantity of startups brings tougher competition, and more must be done to turn investors’ heads.”
“To win the innovation game, startups need to develop a comprehensive, target-audience focused strategy. The current pandemic and the post-pandemic world present a unique set of challenges where startups need to stand out from their competitors and develop investor relations through communications. While communication needs differ at different stages of a start-up’s growth, how start-ups communicate with their audiences and tell their stories remain a critical function of success,” said Priyanka Bajpai, Regional Head, SPAG, in a press statement.
Developed in partnership with KPMG (Singapore), APACMed, PRCA SEA, and e27 and in consultation with key members of the investing community and innovation ecosystem, the report aims to provide an overall view on the communication landscape and guide startups with sound communication advice. It dives into the investor perspective for startups, from a communications standpoint, and includes insights from the advisory committee on the Asia Pacific (APAC) investment scene.
The report looked into the different stages of a startup’s communication journey –from inception to late stage– and provides insights based the different needs and challenges of each stage. But before we can get to this part, we first need to understand what investors are looking for in a startup and how they find them.
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The figures
When asked about the top three fundamentals that they are looking for in a startup, participating investors stated that they are considering product or service (50 per cent), market or product fit (27 per cent), and unique value proposition (27 per cent). For product or service, there are other considerations that investors are looking at –a great part of it involves the necessity of the product or service itself (55 per cent).
When it comes to considering the founders and the team behind the company, attitude and personality come out on top with 23 per cent.
The report also revealed the channels through which investors are gaining access to potential investments, which was dominated by other VCs, investors, proprietary networks, and pipeline companies at 36 per cent. This indicates that recommendations still play a great role in helping the investors secure these deals.
The journey
The report described the startup journey as potentially “overwhelming” when navigated without a strong communication of a company’s unique offering or brand proposition. Based on insights by key industry players, there are four different stages in a startup journey and communications strategies that are especially suited for each stage.
1. Nailing your proof-of-concept
Described as a “make-or-break” step of the startup journey, communications strategy in this stage focusses on convincing investors of the viability, scalability, and product-market fit of your company.
Key activities that you need to work on:
• Create a compelling pitch deck
• Know your do’s and don’ts in investor communications
• Catch investor’s eye and constantly network
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2. Launching your business
This is the stage where a startup map out its business by developing brand narrative, a comprehensive document encapsulating key messages on the company’s purpose, product and service offerings, and so on.
Key activities:
• Build your brand narrative
• Leverage channels effectively
• Track and measure strategies
3. Scaling up and beating the competition
Ideally, at this stage, a startup should be able to identify and capitalise on current initiatives that work, while mining new marketing streams that are necessary for growth goals.
Key activities:
• Grow your marketing and communications team
• Be bold and unique in your strategies
• Never neglect internal communications
4. Gaining market leadership
At this stage, a startup should be on its way to gain a foothold of the market, but it does not mean they can forgo promoting, protecting and strengthening the credibility of your brand.
Key activities:
• Strengthen thought leadership
• Localise brand communications
• Remain consistent, authentic and credible
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