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The world’s most successful companies often have a similar business approach, even if their products or services are vastly different. One essential commonality: They each have a powerful brand that connects with audiences and the market. Strong brands aren’t coincidences — they are born from intentional brand strategies.
If you are trying to connect with venture capital (VC) funding to take your startup to the next level, the most consistent path to success includes an effective brand strategy. Bottom line: Any edge can return value in the hyper-competitive VC environment. Here’s how branding can positively impact your journey to attract venture capital.
First: What is branding?
Branding for entrepreneurs and startups is an integrated network of messages and channels that can empower your business to better connect with venture capital investors. This network generates the characteristics, qualities and emotions that audiences think of to intuitively define your product or services.
Successful branding can resonate with VC audiences in a way that builds awareness, creates authority and trust and influences market behavior. At its most powerful, branding tells a compelling story about you and your company that makes your journey toward VC funding faster, easier and more rewarding.
Related: The Basics of Branding
Building a powerful brand strategy
Many startups make the mistake of delaying their most essential branding activities until they have their financials fully resolved. Why is this backward? Because your brand can put in powerful work attracting VC interest and generating trust while you architect a business plan and get your financial ducks in a row.
Consider this process from a VC firm’s perspective: If you’re not engaged enough to build your brand with the quality and professionalism your customers expect and deserve, what other critical factors are lacking? How can they trust that you’re going to offer a strong product if you’ve neglected to invest organizational energy into building your brand?
A powerful brand strategy can kick off the process of generating interest in your company and asserting its authority. VC firms will be more eager to explore your business plan if your company’s core idea captures their interest. One interested VC firm can lead to more, which creates a snowballing tide of interest and the kind of momentum that can impact deal flow.
After your brand has exposure and the financials are ready, it’s time to put them together into a pitch deck that really sells your company.
Critical ingredients for a winning pitch deck
You have your story distilled into messaging that effectively showcases your brand. You have a business plan that demonstrates what success looks like for your company and its investors. So, what’s next?
A pitch deck integrates your branding and business plan into a tool that can effectively share your business vision directly with investors. It’s a visual presentation that not only helps investors understand your business but how they can derive value from its success. A typical pitch deck structure includes a description of the market opportunity, your solution, your team, any potential competition, a business plan or financials and the amount you’re seeking to raise.
Essential pitch deck tips:
- Emphasize design. First impressions make a huge impact. Dated graphics or sloppy layouts can close doors before you even have a chance to make your case. Work with a designer to create an attractive and professional design for your pitch deck.
- Understand your brand & be consistent. Consistency generates authority, trust, and familiarity. It demonstrates that you have a strong understanding of your own business value. That builds value in a marketplace that rewards confidence.
- Be real. All sizzle and no steak is a recipe for failure. VC firms respond to branding, and while you can influence their perceptions, they’re not naive. Your brand story should make business sense, and your financials should be coherent. Otherwise, your audience will quickly understand there’s no actual substance to invest in.
Attract & sustain VC interest with compelling branding
A successful branding effort builds trust, influences decision makers and returns value in the VC marketplace. It’s the initial step in a process that includes creating your business plan and integrating everything into a polished pitch deck to present to investors.
You’ll be confronted by numerous external hurdles along your journey to secure VC funding, so you mustn’t be the source of additional challenges. Use a strong, relevant and consistent brand strategy to create a marketplace advantage. Seemingly small branding details can significantly impact deal flow and make all the difference in gaining venture capital funding and taking your business to the next level.
Go to Publisher: Entrepreneur: Latest Venture Capital Articles
Author: Tatiana Dumitru