I just read an article in Technology Today titled, "Tech
Start-Up 2.0," that claims "this generation of start-ups is more
organized and aggressive than ever." If high tech is coming back,
then opportunities for PR firms and professionals are coming back,
too.
However, start-ups are working with leaner budgets that make PR
spending hard to justify.
Nevertheless, a solid product is not enough to get funded today;
start-ups need to distinguish themselves from the thousands of
other companies struggling to catch the eyes of investors. While PR
is difficult to afford, it is increasingly common to see start-ups
using it.
PR is becoming more affordable for start-ups because many of
them expect us to work for equity. Equity payment is the norm here
in Silicon Valley, and it is becoming increasingly common across
the country.
When Google was still running on $100,000 in seed
funding, it hired Wilson Sonsini, the best law firm in
Silicon Valley.
Wilson Sonsini took a major risk by agreeing to receive payment
in the form of a 2% equity stake and then billing Google for the
firm's services only if Google raised the millions it needed to
build a solid company.
While equity may pay off in the long run, it doesn't pay the
bills today. Start-ups need to realize that most PR firms and
professionals do not have the flexibility to work entirely for
equity.
Switching perspectives, as a PR professional looking to work (or
to land a contract) in a start-up environment, there is in an
inherent risk in working for equity.
It's also incumbent upon PR execs to do proper due diligence on
any start-up to prove that it is a viable company with a clear exit
strategy.
It is most important to understand the pace and culture of
start-ups. In a start-up environment, speed is the top priority.
The big guys can afford to take several weeks to a month to plan
each PR campaign. Start-ups expect every member of the team to work
at lightning speed, and it is not unusual to have a two-day
deadline to create and execute a new PR campaign.
What's more, developing and executing a good PR campaign in two
days is more important for the company than spending three weeks
developing the ideal campaign.
Start-ups also are looking for innovative PR professionals who
can execute campaigns without spending a lot of money. Here are
several ideas to minimize costs while simultaneously working to get
the company's message out:
- Make friends with bloggers. Instead of sending bloggers
a press kit (which annoys them to no end), take the time to read
their blogs daily and e-mail them when you find something
particularly interesting on their blogs.
Taking time to show interest in blogs can lead to bloggers
taking the time to get to know your company. On several occasions,
local stories featuring my company have been broadcast on blogs.
This helped to create enough buzz for national media coverage.
- Book speaking engagements for your senior executives.
It's important to understand each player and the venues in which
they are most comfortable.
For example, my company's VP of technology feels most
comfortable giving an in-depth analysis of our industry and our
company's role to an audience of no more than 50 tech- savvy
individuals.
Yet because 50 is a pretty small number of people, I try to book
him at venues that fit his comfort level, and I leave open the
possibility of broadcasting the venue via radio or having members
of the media attend. They can then -- if we get them stoked enough
about the product -- disseminate our company's message.
- Target publications spec-ific to your start-up's
industry. Potential investors are busy reading trade
publications. Have your CFO write columns; this will highlight your
company's unique perspective and help differentiate it from the
pack. - Everyone on a start-up team is expected to work beyond the
"job description." A colleague of mine, working in a start-up
for the first time, once was asked to wash the windows in the
office. He replied, "That's not in my job description." He was
shocked when his co-workers laughed at him hysterically.
Expect to do anything, ranging from janitorial work to helping
co-workers with their projects. This is not simply a 9-to-5 job;
expect to put in between 10 and 14 hours a day for six days a
week.
Successful application of these strategies helped distinguish my
company, landing us an investment, not to mention renewing my faith
in equity payment.
Contact: Denis Hiller is communications director at
Silicon Valley-based startup AnchorFree Wireless, an angel-funded
innovative wireless Internet (Wi-Fi) pioneer. He can be reached at
650.669.2772; [email protected]