News
Tech start ups more successful with PR
Fri, Nov 21 2008
Chicago, IL November 19, 2008: In a survey targeting U.S. based technology startup and early stage companies, BIGfrontier Communications Group, a Chicago public relations boutique, found that companies engaging in public relations campaigns were 30% more successful in attaining funding within 1-3 months than companies without a campaign. Additionally, 78% of those companies with a program said that PR helped with their funding efforts and planned on using a portion of the venture funding for more PR activities. BIGfrontier collected over 300 responses primarily from companies that had received funding within the past three years.
"The ironic part of this survey is the fact that only 18% of those without a PR program prior to funding plan on using their new found funds for a PR program. It's one of those 'they don't know what they don't know' scenarios. It's clear that companies that invest in getting out messages prior to and during the funding process shorten the cycle. And that additional time can mean a lot to a startup," says Steve Lundin, BIGfrontier's Chief Hunter and Gatherer. BIGfrontier has provided public relations services to over 70 technology startup and early stage companies and runs business/technology networking events in Chicago.
In hard numbers 44% of the respondents engaging in PR outreach received funding within 1-3 months as opposed to 14% for those that didn't. 45% of those without a PR program received their funding in 3-6 months, while 32% received it in 6-9 months. 55% of both groups received 100% of the funding they were seeking. According to PricewaterhouseCoopers Moneytree, a site that tracks venture funding, there were 1271 funding events for startups between Q3 2005 and Q3 2008 and 3104 for early stage companies. BIGfrontier used a combination of direct solicitations as well as extensive social network polling to attain the survey results.
"We became aware of this trend when we conducted the marketing for the Illinois Venture Capital Association's 2008 Midwest Venture Summit. The companies with active PR programs had very well honed messaging, as if they were presenting digestible sound bites to a reporter. Telling a story in a compelling manner and having it heard by potential funding agents prior to a presentation makes a difference," adds Lundin.
