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    how visibility can win over investors during a fundraising winter

    In a typical fundraising round, founders rely on the strength of their pitch decks, financial models, and growth projections to attract investment. But in a fundraising winter, when capital is scarce, the same strategies that worked in the past often fall short. Investors are more cautious, asking tough questions, and scrutinizing not just numbers but character, leadership, and resilience.

    This is where visibility becomes a strategic asset. Visibility isn’t just about media mentions or social posts—it’s about how your company is perceived across multiple touchpoints before investors even see the pitch. Investors want to know if a startup can survive tough times, stay relevant, and keep innovating. Visibility provides the proof that you’re still making noise in a quiet market. In fact, the right visibility strategy can win over investors before the pitch deck even hits their inbox.

    This article explores how visibility in a fundraising winter can act as a trust signal and turn your startup into an irresistible opportunity for investors navigating cautious waters.

    Q1: Why is visibility crucial during a fundraising winter?

    During tough times, many startups focus solely on announcing their successes, thinking it’s the best way to maintain investor confidence. While positive news is important, the real value often lies in sharing both the challenges faced and the solutions implemented. Investors, particularly in a fundraising winter, want to see how startups deal with adversity, adapt, and innovate their way through difficult periods. It signals that the founders can be trusted to navigate tough markets and emerge stronger.

    Take Zoom as an example. Before the COVID-19 pandemic, Zoom was relatively unknown outside business circles. When the world shifted to remote work, Zoom experienced a massive surge in demand. However, along with growth came major challenges, including scaling issues and security flaws like Zoom-bombing. Instead of hiding these problems, CEO Eric Yuan and his team openly communicated about the issues and outlined how they were addressing them—by hiring security experts, pausing new features, and scaling infrastructure.

    Yuan regularly appeared in interviews, on blogs, and social media, reassuring users and investors that Zoom was committed to improving its platform while scaling responsibly. His visible leadership helped Zoom maintain trust during a time of explosive growth and operational strain.

    This approach not only reassured investors but led to a 500% stock rise in 2020 and a $1.75 billion offering in early 2021. Zoom’s transparent handling of both growth and crisis positioned it as a resilient, long-term player.

    Q2: How can startups balance transparency with confidence when navigating visibility during tough times?

    Startups must find the balance between being transparent about the challenges they’re facing and maintaining confidence in their ability to overcome them. Investors value honesty, especially during difficult periods, but they also need to see that leadership remains resilient and capable of steering the company forward. The best way to approach this is to be open about the reality of the situation while framing challenges as opportunities for growth and explaining the actions being taken to address them.

    For example, instead of simply reporting a dip in revenue or other setbacks, founders should highlight the steps they are taking to pivot, innovate, or streamline operations in response to these challenges. This shows that the company is not only aware of its difficulties but is actively finding solutions and moving toward a stronger position.

    Slack during the period when it faced intense competition from Microsoft Teams. Despite being a popular workplace communication tool, Slack was open about the fact that Microsoft’s entry into the market created significant pressure. Rather than shy away from discussing this challenge, Slack’s leadership, including CEO Stewart Butterfield, acknowledged the competition and the difficulties it brought. However, they maintained confidence by emphasizing Slack’s differentiation—its focus on integration with other software tools, and its superior user experience.

    Slack also took proactive steps to maintain its leadership position, including releasing updates and new features while highlighting user success stories. Butterfield consistently communicated how the company was adapting and evolving in response to competitive pressure, showing that Slack was not just reacting but was leading innovation in the space.

    Q3: Who should be responsible for maintaining visibility during tough times—founders, marketing teams, or both?

    Generally, outside of a fundraising winter, a founder’s visibility is paramount because investors typically back people, not just companies. Founders set the tone for their companies, and their personal presence reassures investors of the company’s leadership and direction. However, in a fundraising winter, this visibility becomes even more crucial. Investors, now more cautious, need to feel confident not just in the business but in the individual leading it through uncertainty.

    During these tough times, resilience, adaptability, and leadership are what investors seek. The founder’s visibility—through interviews, industry commentary, and direct investor engagement—becomes a key differentiator. While marketing teams handle execution, the founder embodies strategic leadership. A well-known, hands-on founder signals that the company is not only staying afloat but steering decisively through challenges, which gives investors confidence.

    Take Elon Musk as an example. His personal brand is tightly linked to Tesla’s success. Musk is more than a CEO—he’s Tesla’s driving force. He is highly active on social media, engages directly with the press, and consistently makes bold public statements that highlight Tesla’s vision and innovation.His visible leadership has kept investors engaged and confident, even during uncertain periods for the company. In this case, Tesla’s marketing team amplifies the broader message, but it’s Musk’s direct involvement that truly captivates investors and builds trust.

    Q4: How can startups tailor visibility to attract the right investors? 

    Attracting the right investors isn’t just about visibility—it’s about being visible in the right way, with a story that investors can buy into. For startups, who are looking to break through to the global investor radar, it requires more than just company and product announcements. It’s about building a narrative that positions your company as essential to the future of your industry.

     

    A great example is Flutterwave. Despite being a fintech heavyweight in Africa, CEO Olugbenga ‘GB’ Agboola doesn’t rely on past achievements to keep the company in the spotlight. Instead, he consistently shows up at key events, writes thought-provoking pieces, and contributes to discussions on Africa’s growing digital economy. He’s not just pushing Flutterwave’s success; he’s telling a broader story about solving cross-border payment issues—a narrative that aligns perfectly with what international investors care about.

    Beyond the story, you need to be where investors are. This means securing media coverage in the outlets they trust—whether it’s Financial Times, TechCrunch, TechCabal, or sector-specific platforms. GB is always in the right conversations, appearing at global fintech summits like Money 20/20, Web Summit, Africa Tech Festival etc and contributing insights to media that investors are following. It’s a deliberate strategy, and it works.

    The same goes for how you share your wins. Investors love to see momentum, but it’s not just about big funding rounds. Highlight strategic partnerships, market expansions, and meaningful customer success stories.

    Finally, don’t overlook the power of thought leadership. Investors want to back founders who are seen as visionaries. Writing op-eds, sharing insights on podcasts, or getting on panels at industry events gives you credibility. It positions you as a leader who’s not just building a product, but actively shaping the future of your industry.

    About author

    Adjoa is a leading PR consultant and communications strategist with a proven track record of elevating visibility and thought leadership for startup founders, CEOs, and corporate leaders in emerging markets. With over five years of experience in PR, she has worked with some of Africa and the Middle East’s most innovative companies across healthtech, fintech, agriculture, and education.

    Her efforts have secured client features in global outlets like Harvard Business Review, World Economic Forum, Fast Company, and CNBC, and placed them on prestigious stages such as The Economist Sustainability Week and Georgetown Africa Business Conference. Known for her bold creativity and precision, Adjoa transforms brand stories into global movements.

     

     

     

     

     

     

    Source:
    3news.com
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