Startup PR 101: How to Write a Funding-Related Press Release

“Startup XYZ Raises $10 Million in Series A Funding for a Commercial Project.”

“FinTech Startup ABC Closes $2 Million in Series B Funding.”

These are some common headlines we see in press releases from startups who received massive funding from investors. Distributing press releases of such nature is important to new startups because

• It is one of the most cost-effective communication methods;
• It creates brand awareness, recognition and confidence among target audience as well as potential investors;
• It helps attract talent to work for you.

So what should you look out for when writing a news release that sparks interest from the media? Read on to find out more.   

1) Make your title concise and informative

Writing quality content is important, but if the heading does not pique the interest of your readers, your efforts will be put to waste. A good heading should be free of punctuations and easy to understand; avoid any use of financial jargon that may deem difficult for a layman to grasp the meaning. As a general rule of thumb, your heading should also give an overview of the content with the following details –

• Your company name
• Investment amount and period (The investment amount indicates the value of your upcoming project, and how your project impacts the industry.)
• Funding series (The development stage of your company is an important piece of information for your future investors.)
• Investors who are funding your business (Riding on renowned investors’ coattails may help establish your company’s reputation.)

Read the release: EHANG Raises $42M in Series B Financing and Brings Four Executives From Global 500 and Public Hi-tech Companies Onboard

2) The first paragraph should contain the most newsworthy information

Crafting a meaningful title is not enough. The first paragraph of your press release should provide a quick synopsis of the article, allowing readers to decide if they want to read further. This is because humans, on average, can only stay focused on an article for 30 seconds and read the content in an F-shaped pattern. This means most of them will only read the title and first paragraph before skimming to the rest of the content. To make full use of the condensed reading timeframe, you can adopt the “Inverted Pyramid” writing style where the most important details are in the first paragraph. As a guideline, basic information of the investment should be provided in the first paragraph, supplemented with the investors’ information and the impact of your company or the industry after the capital injection. For example, use words like “first round” or “largest funding/financing” etc. to make the content even more exciting and lead your readers to the next paragraph.

Read the release: WeLab Raises US$160M in Series B Financing from Khazanah and ING Bank

3) Explain the significance of your project

For your readers to understand the intention of the funded initiative, substantiate and elaborate your points in the coming paragraphs. Providing such information not only builds trust and confidence in your brand, but also allows them to understand the significance of your project to the society, community, economy or market.  Here are some guidelines to follow:

• What is the performance and market position of your company after the capital injection?
• How does the funding solve market problems or cover market gaps?
• Who are your investors and what are their thoughts on providing capital to your project?
• What are your founder’s comments on the impact of the funded project?
• What is your business model and how do you foresee the growth of the business and market?
• Are your company’s core values in line with the funded project?

Read the release: FinTech Startup Bento for Business Closes $7M Series A Financing Round Led by Comcast Ventures

Read the release: uuzuche.com Secures $10M Series A Investment, Funds Will Allow Company’s Service to Penetrate All Tier-1 Cities in One Year

4) Evoke emotions by sharing the founder’s story

A great piece of financial article is incomplete without the founder’s endorsement. The person who started the business and grew the company to greater heights should personally tell the story to the readers. This kind of personal touch can strike the emotional chords of the readers.

Also, including the founder’s background, work experience, entrepreneurial experience as well as achievements in the article may spur interest from the media who are interested to interview successful entrepreneurs. Scoring an interview with the media may boost the founder’s profile in his industry and also create more awareness for your enterprise.

Read the release: KAfe Group Closes US$5.5 million First-Round Financing to Accelerate Expansion of First Urban Fusion Cafe Chain Across Vietnam

Don’t forget to take note of the following points when writing the news release:

• Highlight the funded amount instead of the value of your company – The value of your company is intangible, hence reporting the funded amount carries more significance. For the media, the estimated value of your company might be too intangible for them to include as a solid piece of information. Many journalists would be more interested in reporting the exact amount of fund you receive to add some credibility to their stories.
• Regular updates of your financing news can be a double-edged sword – No doubt that disclosing your financing information to the media builds brand awareness. But regular updates may trigger malignant competition over startup funding from fellow startup competitors.
• Present true data without over committing – If you over commit and your company performs below expectation, it may be difficult to obtain the next round of funding from investors.