91% of investors believe that communicating the value proposition well increases the chances of attracting investment
When does the brand become relevant to investors in the innovation market? What is your role in the growth of a business? How important is the reputation and personal brand of founders?
Questions like this were the focus of the 2nd National Survey on the Impact of Public Relations on the Innovation Market, carried out by the Motim agency.
The study showed that 91% of investors believe that communicating the value proposition well increases the chances of attracting investment, being one of the decisive pillars when choosing new businesses to invest in.
For 55% of investors, clarity in brand positioning and value proposition is the main attribute to be analyzed and 36% pointed to the positioning and trajectory of the founders as a key factor.
Still on the topic, 2% cited the visual presentation and brand concept, 2% highlighted the demonstration of traction with users and customers and 3% prioritized presence in qualified media and the press.
In addition to strengthening the brand, consistent communication of the value proposition has also been shown to enhance trust among investors.
It is almost unanimous that founders need to adopt an active role, taking the lead in the company’s communication and strengthening the market’s trust in their ideas, this includes everything from their presence on social networks and institutional websites, to events and interviews in the press.
In the survey, 91% of investors claimed that brands with clear and strategic communication are more likely to be successful in raising funds.
Relevance
Motim’s research revealed that out of every five investors, four understand that the impact of brand positioning and strength on valuation happens in the first rounds of investment.
Another point highlighted in the research is the importance of creating a narrative to strengthen the brand, as this has a cumulative effect, that is: the more this investment is made strategically and consistently, the greater the results and the longer lasting the effect.
“A recent case that gained wide repercussion is that of Airbnb. The company was able to turn off its paid ads with no immediate effect on results. This was because the brand backlog was large enough to sustain revenue growth without immediate conversion triggers. This construction should begin on the 1st”, explained Ana Laura Motta, CBSO at Motim.
Reputation
Three out of four investors think investing in reputation is important. According to the survey, 41% of investors believe that building a good reputation brings benefits in both the short and long term, while 31% see this impact mainly in the medium term.
“Creating a strong, well-positioned and memorable brand is a lasting competitive advantage. It makes price competition less likely and makes investments in performance marketing more efficient,” said one of the independent investors interviewed for the research.
Indispensable PR
Exposure in the digital market also brings risks to the company’s image, and it is essential to have an experienced public relations team. 86% of investors believe that having a specialized team is essential for managing image crises and maintaining a solid reputation. This investment in qualified professionals brings security and consistency to communication, promoting a positive view of the brand.
Photo by Alvaro Reyes on Unsplash
