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Startups Invest in PR: Is it the Right Move for You?

Julija Jegorova Julija Jegorova
October 9, 2024

So, you’ve built something remarkable, your startup is buzzing, and you’re thinking: “It’s time for the world to know about this!” Engaging in public relations (PR) may seem like the next logical step. But before you pop the champagne and start drafting press releases, take a step back. Is PR the right move for your startup right now? Like all good things, timing and intention are everything.

The “why” and “when” of PR are two sides of the same coin, making it essential to explore both together. Whether PR will be a game-changer for your startup—or a frustrating drain on resources—depends on understanding your motivations and timing.

Let’s break it down!

Why PR? The Benefits for Startups

Storytelling, Image, and Trust. At its core, PR is about storytelling. You’ve developed something incredible, but it’s not enough for your team to know that—you need your target audience, investors, and the media to know it, too. A well-executed PR strategy builds trust, enhances your brand’s image, and amplifies your message. It shapes how your company is perceived at every customer journey stage.

Good PR also boosts brand awareness. You enter public consciousness by sharing your story through media coverage, speaking engagements, and podcasts. It’s not just about people knowing your name; it’s about them understanding why they should care.

Building Relationships with Key Stakeholders

PR isn’t just about communicating with customers; it’s about establishing relationships with essential stakeholders, including financial regulators, government bodies, and potential partners. Strategic PR positions your startup as a trustworthy and credible player in the market, opening doors to partnerships, hiring opportunities, and other valuable relationships.

Attracting Top Talent

While a competitive paycheck is attractive, today’s top talent seeks more than just financial compensation. PR can help establish your startup as an exciting workplace. A positive media presence builds a reputation that attracts the best minds in the industry.

Fundraising Opportunities

Venture capitalists (VCs) love a compelling story. Can you blame them? PR can generate buzz, craft a narrative around your startup, and help position you as the next big thing. While money talks, media attention speaks volumes—investors are looking for market opportunities and innovative founders capable of scaling their businesses.

Understanding Newsworthiness

It’s crucial to recognize what makes a story appealing to the media. Newsworthiness hinges on relevance, timeliness, and impact. Journalists seek stories that capture their audience’s attention. If your startup solves a real problem, disrupts an industry, or raises significant funding, you’ve got newsworthiness. Conversely, if your startup is still in the idea phase with little to showcase, PR might not be effective yet.

Here’s a quick breakdown of newsworthy stories that journalists typically cover for startups:

  • Product launches that revolutionize an industry
  • Funding announcements that demonstrate market confidence
  • Founders with unique backgrounds that distinguish them from competitors
  • Partnerships with well-known brands or influencers
  • Research offering unique data and insights

Startups that can share compelling stories, statistics, and case studies have a better chance of getting media attention.

Why Not to Start PR (Yet)

It may seem controversial for a PR agency founder to share the downsides of early-stage PR, but we want the work to be effective. Sometimes, it’s simply too soon! Jumping into PR prematurely can backfire.

If you’re pursuing PR solely for vanity—trying to get press coverage without a substantial story—you’ll quickly deplete resources with minimal return. Consider your customer journey: what role could PR play in optimizing your funnel? If you successfully acquire customers through performance marketing and have limited resources, it may be wiser to continue focusing on ads.

When Should You Start Doing PR?

PR isn’t a magic switch you flip on whenever you feel like it. Timing is crucial, and knowing when PR will deliver value for your startup is essential. Here are key questions to consider:

When Is Your Startup Newsworthy?

The answer is straightforward: the bigger and more successful you are, the more newsworthy you become. However, you can maximize your current newsworthiness at any stage.

  • Early Stages: PR works best when you have something tangible—like a product launch or initial funding—to announce. An experienced or expert founder can still gain visibility through thought leadership, especially with compelling insights.
  • Product-Market Fit (PMF) and Scaling: Once you’ve established PMF, PR becomes a powerful tool in various ways. As your startup grows, media outlets may seek you out more. Leverage evidence of your impact to position your startup as an industry leader and attract customers through innovative campaigns.

Is NOT Doing PR Costing You?

You might miss opportunities if your startup is scaling but not engaging in PR. Every unreported newsworthy event means potential customers, investors, or partners miss out on exposure and trust and may turn to competitors instead. Determine when neglecting PR becomes an opportunity cost. Is trust vital in your customer acquisition, hiring, or fundraising efforts?

Does Your Team Have the Bandwidth?

PR isn’t just something you outsource and forget about. It requires input from your team, whether reviewing press releases or providing insights for thought leadership pieces. Ideally, the intellectual overseer of PR should be a founder, preferably the CEO. If you’re too busy building your product or seeking your next round of funding, and no one else can provide strategic input, it may not be the right time for PR.

Budget and Timing Considerations

PR is an investment that requires proper budgeting. Ask yourself: do you have the resources to commit to PR long-term? PR is most effective when consistent; sporadic media attention rarely yields sustained results. If your marketing budget is tight, consider prioritizing other areas, such as sales or product development. However, a well-timed funding announcement or significant news can lay the groundwork for future PR efforts.

When Not to Do PR

PR won’t be effective if you have nothing to say. If you’re too early in your journey, too busy to participate, or not newsworthy yet. You can always return to PR when you have compelling stories to share. Understanding what is newsworthy and what isn’t is crucial, so ensure you study this aspect thoroughly.

Let’s Wrap This Up!

PR can be a powerful tool for startups—but only when executed at the right time and for the right reasons. When your startup is ready—with news to share, a story to tell, and the capacity to support a PR campaign—PR can help propel you to new heights.

With a little self-awareness and the right timing, PR can be the catalyst that takes your startup from unknown to unforgettable!

Startups Invest in PR
📸: Black Unicorn PR
Photo by Gabriela Sokolova

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Julija Jegorova
Intl PR & Comms Specialist for UK & EU tech Startups, Scaleups & VCs

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