Forty-four percent of the respondents who used PR outreach received funding in the one-to-three-month time period versus 14% of those that did not. The survey also found that 78% of respondents who said PR helped in their funding efforts are planning to use some of their venture capital for additional PR.
“Those entrepreneurs understand that anything they can do to get them an advantage to get limited or finite funding is something they should avail themselves of, especially now,” said Steve Lundin, founder of BIGfrontier. The boutque firm specializes in PR for startups, tech and consumer companies, and law firms.
Overall, though, the survey found that only 18% of the 300 startups surveyed had a PR program in place during the funding process.
“They don't understand that had they spent money on PR services, they would shorten the funding cycle,” said Lundin. “When you're able to walk into a room and someone has heard of your company, that goes a lot further in terms of creating a sense of validation rather than walking into a room cold.”
The 300 respondents were from companies nationwide that had received funding within the past three years. None of the respondents were BIGfrontier clients. The survey was conducted between September and November 2008 via polling on social networks and direct solicitations through e-mail to CEOs and CMOs.