Funding for African startups, particularly tech startups, has often surprised the pundits, bucking the global trends and often hitting high notes that nobody expected. In fact, 2022 was a record-breaking year for the industry. But 2023 finally saw the global investment malaise catch up with the continent, with a Disrupt Africa report showing that total investment in the African digital startup ecosystem dropped by 27.8% to $2.4 billion in 2023. 

And it wasn’t just the value that took a knock, the number of investments also dropped from 36% from 633 in 2022 to just 406 a year later.

The knock has left many startup founders wondering how they can attract the attention of serious investors. It has also thrown a light on the potential of PR as a strategic lever to give young tech companies an edge in what is now, a cut throat race to the capital finish line. 

Make sure you’re heard 

While the ladies from Absolutely Fabulous would have us believe that PR is effortless, and produces instant results in between glamorous sips of champagne and gossip, Patsy and Eddie were right about some things.  Credibility and awareness remain some of the biggest challenges for companies of all sizes. 

But how do you achieve credibility when you’re just starting out and you’re not widely known beyond your immediate circle yet?  

Most founders will tell you that one of their biggest challenges when it comes to securing funding is their inability to clearly and simply explain why their offering is unique – or at least better, faster, smarter, or just cheaper than the competition’s. 

Differentiating yourself, especially to cynical investors who engage with thousands of young companies each year, is much more difficult than many imagine – as we routinely see on TV shows like the BBC’s Dragon’s Den. 

What is required is an ability to articulate the reasons why your company would make a better investment choice than the next guy’s, and sometimes this requires an outsider. 

Founders are almost always too close to their offering to provide the clearest explanation. They focus on the detail of the creation, the innovation that they firmly believe could change the world. And that’s as it should be. Without this passion, the business would not exist. 

The problem is that the people with the money often don’t understand, or are less concerned with the elegance of the code, or the biochemical process that has been instrumental in forging your offering. They care about how it can dominate the market and how quickly that advantage will translate into a return on their investment. 

Communication professionals who have experience in technology fields, whether it’s the digital payments space or the green energy and environmental sciences, live and breathe these complex topics. 

They may not have a degree in science (although some do), but they know how to translate your technical explanation into a concise, easy-to-understand language that allows audiences, from commercially motivated specialist investors to weekend newspaper readers, to know what you do and why it’s special in just a few sentences. 

It’s a two-way street 

Some advisors will suggest that founders wait until they have their first client or have landed their first big deal before investing in PR. Media often wants to see some traction first, although a communications partner could help you prepare for launch.

But this overlooks a very important aspect of the funding ecosystem – it’s not just startups trying to attract investors. Venture capital (VC) funds are also in the business of fundraising. And this opens some very exciting opportunities for both founders and their potential investors. 

Today’s VCs, and even angel investors, are much more sensitised to the importance of sustainable investing and ESG. There is a lot of pressure on investors to show how they are supporting sound investments that promote diversity, governance and sustainability. While just ten years ago VCs were relying on networking for their fundraising, now reputation is crucial and being seen (in traditional and digital media) with brands who are making a difference to our world is a great way to secure more investment for the funding pot. 

For the astute startup, being aware of what the VCs and investors are looking for can be a winning card to play. 

And it’s here again that communication can really make the difference. 

Working with a PR strategist who knows how to position your messaging in such a way that not only attracts the attention of potential investors, but also paints a picture of your business and how it answers the sustainable investment and ESG agenda means you become a business they want to be associated with. While it won’t negate your medium- to long-term financial projections, it adds a compelling additive that many investors may be looking for. 

For this reason, it’s never too soon for startups to begin the PR journey. 

It’s not too soon, and it’s not as scary as you think

Getting to grips with your brand’s narrative, key messages and being seen and heard in all the right places doesn’t require a long sales track record. Nor does it require a huge PR budget. 

Happily there are smaller agencies that specialise in tech PR. These agencies are seasoned in the complexities of helping startups refine their core messaging, build a solid communications strategy, and helping the fledgling business showcase its expertise. 

In the beginning, this may focus on drawing on the founders’ industry expertise and subject matter knowledge. You may not have a host of clients yet, but you know more than most about your industry and this can be profiled by looking at industry trends and challenges and commenting on potential solutions through well placed thought leadership pieces in the media. 

This will serve to build the profile of your leadership’s deep insight, while getting your company’s name in front of potential investors – many of whom are themselves looking for publicity in that same publication.  

The key is to find a PR partner who knows your industry, has a great track record with the media you are targeting, and who will grow with your company. There is absolutely no substitute for travelling the investment path with a partner who can weather the many storms that lie between seed funding, local and even international expansion, and a possible IPO. You just need to ask. 

For more information about how you can get from seed funding to Series A-D, contact us.