Categories: OLD Media Moves

Does media coverage help a startup get funding?

Chris Bing of DCInno writes Wednesday exploring whether increased media coverage of a new company helps the business find venture capital investing.

Bing writes, “To some degree, media matters for both Brady and Delistathis, but it’s mostly in positioning a company before the eyes of an investor. Therefore, the source or publication that produces the story is paramount.

“But not every venture capitalist is the same.

“Bobby Acampo is a director at Chevy Chase-based Revolution, a venture capitalist firm founded by prominent investors and internet entrepreneurs Steve Case and Ted Leonsis — which has invested in a number of DMV startups. He believes that significant/positive PR can also help but it ‘certainly does not determine whether a company gets funding or not.’

“It’s more important to establish a tangible and personal connection with a potential funding source rather than collecting a series of media clips, Acampo described. He also added — differing from his fellow VCs — that in some cases, too much press can even be negative. ‘Too much PR can be a bad thing, especially if a company isn’t at scale yet. [For example] it’s one thing if you’re a consumer company but if you’re a B2B/enterprise company and you’re buying up billboards (and you’re still pre-Series A), I question if it’s a good use of capital.'”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

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