How to announce a funding round

Attracting investment is a milestone for any startup – it’s a vote of confidence from a respected outside expert in your space and a signal that your company is positioned for the future, which is important to prospective partners and customers, as well as future investors.

Beyond that, new funding can also increase your visibility, attracting the attention of top talent and potential acquirers. One of the most effective ways to magnify your visibility is through a funding announcement. After helping hundreds of companies understand this process, here are my suggestions for how to get it right.

Drafting the Announcement:

Not every funding announcement is the same, but standard components include:

  • The news + the facts:
    • Who raised? How much? Who are the investors? Which investor led the round? What stage is the company?
    • Mention any investors that invested in earlier rounds. It signals an ongoing relationship and continued confidence.
    • Call out any investors who are joining the board.
  •   Background on the company:
    • What does the company do? Who is the founding team? How will the money be used (new hires, development, etc.)?
  • Validation from the investors:
    • A quote from the investor(s) is an expert endorsement. Typically, the investor speaks to the reason for investment. This may include the executive team’s capabilities, why the company is exciting, or momentum in the market.  In rounds with multiple investors, the lead investor is given priority and is often the only investor quoted.
  • Quote from the founder or CEO
  • Company boilerplate

New funding announcements benefit from a dedicated audience of interested journalists, so exploit the opportunity to tell your story. This is your chance to explain who you are, what you do and why, underscore momentum and call out recent achievements.

These days, there are so many reporters covering funding news that it’s no longer necessary to “bundle” your funding with other news. In fact, there is likely more benefit to a standalone funding announcement followed shortly by another announcement that indicates momentum.

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