Quite often clients come to us looking for our support to help them pursue funding, and more often than not we see a glaring gap in the due diligence of those seeking funding.
They have their pitch prepped and are ready to go. They can tell you everything thing you want to know about the product or their idea. They even have the best of the best on their team (e.g. industry subject matter experts, advisors, consultants, and even us…).Yet, somehow they just can’t seem to get a funding commitment from an agency or investor. Why? What is it?
It is their online presence. All of it. Or in most cases… lack thereof. Aside from a random business listing on Manta. There is none. Zip. Zilch. Nada. Nothing.
Your start-up’s online presence is the first introduction an investor has to your business.
Social media presences/activities do indeed influence the ability to find and close better funding rounds. This includes both dilutive and non-dilutive funding.
All it takes is a few posts a day to drastically improve your chances at securing well needed financial support from VCs, angel investors, or those funding an award or contest.
According to a recent study by Wharton Business School entitled ‘Social is the new financial: How start-up social media activity influences funding outcomes’, social media activity and the ability to obtain funding are positively linked.
The researchers found that, of the start-ups they looked into, a one standard deviation increase in Twitter Influence measure (this is the equivalent of a 5% increase in mentions, a 12% increase in impressions or an increase in followers of approximately 200k) could lead to an extra $1.5 million in second-round funding.
In a recent article, Finsmes.com explains the major role social media can have on a successful campaign to generate funding opportunities.
“Attracting the attention of investors doesn’t happen overnight, nor does it happen through a single channel. Instead, it’s a combination of an effective online presence and the ability to communicate the right message to those who are willing to spend. Social media ticks both of those boxes without fail. When you also consider the transparency of today’s startups and the need to emphasize culture to investors, there’s arguably no better place than the various social channels to do exactly that.”
This means that now more than ever, you need to be visible online as a company. Now more than ever, it is to your benefit to create a consistent message and brand across all websites and social media profiles associated with your company.
Since the first impression we formulate about a person or organization tends to be enduring, wouldn’t you want well administered and well-curated social media profiles to create a positive image of you and your company to those who have the means and inclination to provide you with funding?
Just our two cents.
Let us help you meet your M/WBE utilization goal. We can help you locate funding, apply for funding, and help organizations measure & report on outcomes. See our experience with grant writing and evaluation services HERE.