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Tag: Investor Relations

  • 5 Smart Marketing Strategies to Thrive Under Investor Scrutiny | Entrepreneur

    5 Smart Marketing Strategies to Thrive Under Investor Scrutiny | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As the most important audience for many companies, it’s important that investors are enthusiastic about the company’s marketing activities. Given that different investors have varying levels of marketing acumen and beliefs about effective marketing, your marketing team must customize how it collaborates with investors on an individualized basis.

    That said, there are several tactics that are frequently effective in ensuring investor confidence in your marketing program.

    Related: 5 Tips for Customizing Your Pitch for Every Investor

    Research your markets and build marketing around the results

    An intelligent marketing program begins with market intelligence. To demonstrate to investors the strategies and execution your marketing team has put together will provide optimal results, quantitative and qualitative research creates a strong foundation.

    In addition to formal market research, the marketing team should also talk informally with target customers, technology and distribution partners, media, industry analysts and market influencers to build and continuously update its understanding of dynamics such as new activities, trends and potential new competitors.

    Involve your investors in marketing

    Investors often have significant followings of their own on social media and are often regarded as thought leaders and industry experts in the venture capital and tech communities. These links can often provide significant benefits to your company as you look to enter new markets, attract talent, ink partnerships and pursue similar goals. An easy way to involve investors and tap into their networks is to include them in the company’s social media program to explore cross-promotion, especially on LinkedIn.

    One approach that can be effective is to ask investors to post on their social channels when the company announces or closes a funding round, senior executive appointment, product or related announcement. We often draft the posts for investors in advance to minimize their time commitment and to ensure the posting takes place.

    Many investors, especially VC and PE firms, have created marketing programs to highlight the companies in which they have invested. Your marketing team should aggressively pursue these opportunities as they both serve as free publicity and deepen your ties to the investor.

    Related: Ask These 3 Questions to Determine Where to Spend Your Marketing Dollars

    Study competitors and identify best practices

    To demonstrate to investors that your marketing team is exploring all avenues to support the company’s growth, it should periodically undertake a thorough analysis of competitors’ marketing activities as well as general best practices. This review should include digging in to learn as many details as possible about competitors’ products, future product strategy, market expansion plans, et al — all by ethical means, of course.

    The team should also study marketing approaches at companies in other industries and consider applying relevant activities to your company. Companies in certain industries, such as food and beverage products, tend to be very sophisticated marketers since they have fierce competition and are trying to influence consumers who are often fickle. Marketers in a wide range of industries can learn valuable lessons from their peers at consumer product companies and then report back findings to their investors.

    Measure ROI of all marketing activities

    Setting key performance indicators (KPIs) and managing metrics on an ongoing basis provides a quantitative way to show investors both the effectiveness and the ROI of the marketing program. Of course, some marketing elements, such as advertising and digital marketing, are much easier to quantify than activities like media relations.

    But even for activities that are less measurable in terms of driving lead generation and sales, marketers should get creative and develop some type of metrics. For example, while it’s nearly impossible to prove that media coverage has driven sales, it is possible to tie media coverage to increases in website and social media activity and demonstrate a correlation.

    Related: 10 Things You Must Do Before Connecting With Investors

    Tie marketing to lead generation and not just brand awareness

    Many investors think of marketing as more of a function to build brand awareness than to generate leads and sales — but it does both. The level of contribution to business development depends on the product or service being sold. If a consumer is planning to buy a printer for their home, seeing an online ad with a discount coupon or reading a positive review in reputable media can very possibly generate that sale. If a CIO is researching intrusion detection software for their cybersecurity stack to protect her company’s critical data assets, marketing may attract her interest and encourage her to contact the company, but it’s definitely not going to end in a sale.

    As with so many activities within a business, demonstrating the effectiveness of your marketing program to investors will be much easier if your marketing team plans ahead, gets the foundational research in place, measures their results and anticipates questions investors are likely to ask. Anticipating and addressing investor queries will facilitate working with them when difficult marketing situations arise.

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    Tim Johnson

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  • Why Investors With an Entrepreneurial Past are Vital to Startup Success | Entrepreneur

    Why Investors With an Entrepreneurial Past are Vital to Startup Success | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In this article, I would like to focus on one significant trait that some investors possess — an entrepreneurial background that enables them to establish strong connections with startups and better understand the ‘pains’ and challenges new founders face.

    Based on my personal experience as an entrepreneur I would like to highlight key aspects of communication with startups and why your entrepreneurial past makes you a little bit different from others.

    Related: 6 Steps to Finding the Right Investors for Your Business

    Speaking the same entrepreneurial language

    When communicating with founders, having an entrepreneurial background is extremely helpful. Founders can sense it, even from how questions are formulated, and they often highlight they have never been asked such questions before — questions are tailored with a deep understanding of the subject.

    And it’s not just about technology-related topics, but specifically business management, such as sales funnels, marketing strategies, product market fit and customer development. Besides managing businesses, having personal experience in creating acceleration programs and all the leading methodologies of Silicon Valley, which we have integrated into accelerators for many years to make them more effective, can enhance communication between investors and founders.

    With my experience of establishing 42 accelerators and collaborating with 1500 alumni startups, I have encountered familiar patterns, challenges and intricate situations when working with founders. We have found solutions together with startups in the past, and now I bring that experience to my current communication with founders.

    Entrepreneurs then — investors now

    Investors with entrepreneurial backgrounds bring valuable insights and expertise to the table. They have firsthand experience navigating the challenges and uncertainties of building a business, which allows them better to understand the struggles and aspirations of startup founders. Here are some great examples from the venture world.

    Mark Suster is a well-known voice in the investing world, having written extensively about investing in startups and building them on his website, Both Sides of the Table. He possesses the unique ability to discuss both sides of the table due to his experience as a two-time entrepreneur, having sold a company to a French firm and another to Salesforce. Currently, he serves as a partner at Upfront Ventures in Southern California (SoCal).

    Marc Andreesen, viewed as a pioneer in the tech space, founded Netscape, Opsware, Ning, and now his investment firm, Andreessen Horowitz. He’s an expert in tech trends and a frequent speaker in the angel investing space.

    Reid Hoffman is one of the most sought-after opinion makers in Silicon Valley. He is widely recognized for founding the largest business social network in the world, LinkedIn. Moreover, he has successfully translated his entrepreneurial acumen into profitable investments, with key stakes in companies like Facebook, Airbnb, and PayPal.

    Related: 5 Questions to Prepare for Ahead of Your Meeting With Investors

    Benefiting from an entrepreneurial past: from coaching to strategic planning

    An investor with entrepreneurial skills can provide valuable support and guidance to a startup in several ways. Here are some ways in which such an investor can help:

    • Fundraising strategy. The primary role of an investor is to provide funding to the startup and help them with fundraising strategy going forward. This financial support is crucial for the startup to develop its products or services, hire talented employees and scale its operations. With their entrepreneurial experience, the investor can assess the startup’s financial needs and give some strategic advice on funding allocation. Additionally, can guide the founder towards better fundraising strategy and preparation for investor meetings.
    • Strategic planning. An investor with entrepreneurial skills can help the startup create a solid business plan and set strategic goals. They can provide insights and expertise gained from their own entrepreneurial background, helping the startup identify potential challenges and opportunities. Together with the startup’s founders, they can develop a roadmap for growth and devise strategies to overcome possible challenges.
    • Shared perspective. I think this is one of the most important ways of communication, and here is why. An investor with an entrepreneurial background can better understand startups’ challenges and opportunities. They have likely experienced similar struggles, such as fundraising, market-entry, scaling and operational issues. This shared perspective helps establish rapport and empathy with startup founders, fostering better communication and mutual understanding.
    • Mentoring and coaching. Startups often appreciate investors who can go beyond providing capital and act as mentors or coaches. An investor with an entrepreneurial background is well-suited to fulfill this role. They can offer guidance on overcoming challenges, making critical business decisions and navigating the ups and downs of entrepreneurship. Their ability to draw upon personal experiences can be particularly impactful in helping startups succeed.

    I love seeing founders passionate about their startups, and our fund sometimes goes the extra mile to advise startups, even if they didn’t receive investments from us. It’s important to remember that when rejecting a startup, there is always the possibility that it may return in the future after making significant improvements in key metrics. Therefore, it is in our best interest to provide additional advice on what steps they need to take to attract funding.

    I receive requests from founders for personal consultations quite often. We were thinking about how to turn this demand into something beneficial for startups and society and came up with a very good solution. We decided to combine venture and charity by launching a project with the Podari.Life charity fund called “30 min/lunch with VC to save lives.”

    Relationship building

    Investors with an entrepreneurial past can leverage their extensive network and connections to open doors, make introductions and facilitate strategic partnerships for the startups they work with. This network can be instrumental in helping startups access resources, industry expertise and potential customers.

    For example, the CEO of one of our portfolio companies, PicUp, recently embarked on his first visit to the USA. He took the initiative to go on an extensive tour, visiting key states and connecting with potential partners and investors. I understand firsthand how challenging it can be to establish new connections in a foreign country, especially in the USA and particularly in Silicon Valley, which has no analogs in the world. With this in mind, we decided to assist by connecting the company with investors and key players in the Silicon Valley innovation ecosystem in advance.

    Related: The Things Successful Leaders Do and Don’t Do to Build Relationships

    What matters the most

    In summary, it is not solely the investors’ entrepreneurial experience that founders find appealing. Rather, their experience in different roles inside a business allows investors to have a wider view and help early founders avoid common mistakes while building the next big thing. After all, venture investment is a long-term relationship, and you want to build partner-like relationships with people you will most likely work with for the next 8-10 years until your exit.

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    Zamir Shukho

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  • 3 Stakeholder Relationships Your Business Needs to Nurture | Entrepreneur

    3 Stakeholder Relationships Your Business Needs to Nurture | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A startup’s brand — both the company and the founders’ brands — plays an important role in shaping how investors perceive their business and, ultimately, how much they are willing to invest. Building a strong brand for the startup and founder, can help differentiate a company, emphasize its unique benefits and increase its perceived value, leading to a higher valuation in the eyes of investors

    A company’s brand is composed of various persistent actions done online and offline. One component that affects a startup’s brand lies in their relationships. Let’s shed light on this component and present the three types of relationships any startup founder should focus on to increase their growth, brand value and, ultimately, their valuation.

    Related: From Customers to Investors to Employees, Here’s How to Connect With Every Company Stakeholder

    1. Board members and advisers

    Having board members or advisers who are industry experts can provide significant value to a startup’s brand and valuation. Those with the right industry knowledge, connections and reputation can help a startup navigate the competitive landscape, identify new opportunities and open doors to potential customers and investors. In fact, a KPMG study called the “2019 Global CEO Outlook” found that board reputation is the second most important factor considered by investors when evaluating a company. While this may not come as a surprise to many, the truth is that finding and harnessing the right board members or mentors is not easy, as they are usually sought-after people.

    To establish relationships with industry experts for potential board members, it is important to first plan out the ideal composition of expertise, knowledge, connections and reputation that your board needs. For example, one board member could be highly connected within your industry, while another may have a Ph.D. in your area, and another may have advised the President of the United States. Additionally, you may want to define diversity goals for your board, such as having an equal number of women and men. Once you have established the necessary structure and profiles, start brainstorming potential candidates for your board.

    The best way to reach out to such individuals is through warm recommendations and referrals from existing board members, investors, or other industry contacts. Startup founders can also attend industry events, participate in online forums and groups and join industry associations where the right profiles of board members may be present.

    One of my career hacks when it comes to finding board members is to approach the “formers” in your industry, such as “former founder of a Fortune 500 company,” “former dean of Harvard Business School” and so on. These former seniors often have a wealth of knowledge, connections, and reputation, and are looking for their next exciting endeavor, and to be a part of the new generation’s work. If you approach them with passion and resonate with their values, they could be your best-kept secret to help drive your company toward its goals!

    Related: Make Sure Your Business Aligns With Your Stakeholders’ Worldview…And Your Own

    2. Industry investors, founders and leaders

    Establishing a robust network of industry investors, founders and leaders can significantly benefit a startup’s growth and brand and valuation. Such connections can provide access to capital, mentorship and strategic advice, which can prove invaluable. It is essential to build relationships based on trust, mutual interests and authentic friendships. When founders are well-connected and valued in their industry, within their network they can support and recommend one another, which ultimately strengthens their personal brand. Additionally, a national research study by Brand Builders Group reveals that 82% of all Americans agree that companies are more influential if their executives have a personal brand that they know and follow.

    To build relationships with industry investors, founders and leaders, startup founders must be visible both online and offline, even if they prefer to be in the office managing the company. They can attend networking events, participate in accelerator programs, and join relevant online communities. By connecting with industry leaders on social media, and posting engaging content, initiating meetups with other industry leaders or having one-on-one meetings, they can gradually build authentic relationships. The key is to be proactive, authentic and intentional in building these relationships.

    3. Co-founders and team

    Investors focus on the relationship between co-founders specifically, and the company culture when evaluating a startup’s potential. The ability of the startup’s leadership to work together and foster a positive culture is crucial to executing on plans, navigating challenges and driving the company forward. In turn, it impacts the startups’ brand and valuation. Additionally, a distinct workplace culture is believed to be important for business success by 94% of executives and 88% of employees, according to a study on partnerships and relationships in the workplace by Deloitte. Ultimately, investors want to see that the startup’s leadership and team have the ability to work together and create a culture that supports innovation, growth and success.

    To establish good relationships among co-founders, it is recommended to foster open communication and collaboration to build a positive and productive work environment. Startup founders can create a strong company culture by defining their values and mission and promoting an open culture that supports individual growth, offering employee benefits, and encouraging work-life balance. They can also organize team-building events and activities to promote team cohesion and foster a positive work environment, among many other ways.

    Related: 3 Social-Intelligence Methods for Building Strong Stakeholder Relationships

    In conclusion, forming the right relationships with industry experts, investors, founders and leaders, as well as prioritizing the management team and company culture, can significantly impact a startup’s growth, success, brand and valuation. It is advised for startup founders to focus on building a strong personal brand by following the above actionable tips and building strong relationships, among other brand-building components. This can increase their success factors and perceived value and, ultimately, support attracting the funding they need to grow their startup.

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    Lirone Glikman

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