In an earlier post Prasad Thammineni makes a thesis for why startups should blog. He also asks the question, “Do VCs care if startups have a blog?” As a venture capitalist, I would say, “yes, a startup blog is not a bad idea.”
I will ignore the obvious reasons to blog, such as search engine goodness, brand building, etc. Instead, I’ll focus on why your startup blog matters to a VC.
If you are trying to raise venture capital, a blog isn’t a bad idea because:
- A VC might find YOU via your blog. This is true - VCs just don’t sit on their butts and wait for new investments to walk in the door. In fact, some VCs actually know how to use Google… and during our research into your space might we just might stumble across your thoughts and then contact you.
- Thought leadership/PR. If you are a really well known blogger in your space then you will potentially get quoted in press articles and/or asked to speak at events. Since most VCs can read (and a few can even listen) there is a chance that they will be so intrigued by what you’ve said that they reach out to you.
- Better Information. Your blog can help you stay up-to-date on what is happening in your industry. The discipline to post and read other publications regularly might actually help you know even more about the space than you would otherwise. Sure, you’re not going to be the person to break a new story, but having a couple of smart things to say about recent big events in your space is important in VC fund raising meetings.
- Better Organization. Being smart but disorganized can kill your chances of raising funding. The act of writing can force you to be more organized in how you think about the industry and your offering - this is never a bad thing!
- Telegraphs your excitement.Most VCs would prefer to invest in passionate entrepreneurs. Your blog is an excellent tool to show this excitement. After all, use too many explanation points in a meeting and you just look strange!! But use too many in a blog and you just look like Faulkner!! or was he the guy who used too little punctuation
- Proof of customer interest #1. When I go to a startup’s web site and I see a very active blog, with may comments and reply to posts, I have to be impressed. When a pre-launch or early stage startup can generate enough buzz to have a series of legitimate conversations with potential customers about their product or market opportunity I know that I’m dealing with a) good marketers; or b) a potentially very active market. Either is a good thing.
- Proof of customer interest #2. A pre-launch startup with thousands of email addresses of customers who are interested in joining the beta is also impressive. A blog can help create this pre-launch demand.
- Relationships with others in the “ecosystem” who can help spread the word. An active relationship with potential evangelists in your ecosystem can help you get the word out and promote your startup. You can start this dialog by actively commenting on other bloggers’ posts and having them actively participate in yours. VCs are looking for your company to have a real marketing plan; open dialogs with key participants in your space is a great first step in your marketing machine.
There probably are instances when opening the kimono too much can be dangerous. However, a little common sense should be enough to guide you through these times. I’d suggest you get your startup’s blog going!
