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It’s something you might expect to hear in a sci-fi movie, but the term ‘emerges from stealth’ has landed on planet Earth. Now common parlance in the startup ecosystem, it represents the culmination of a process that sees early-stage companies develop products and raise capital with a crucial twist – they don’t tell anyone.
To some comms pros, this will seem counterintuitive. For young businesses craving momentum, surely any milestones deserve to be shouted about… loudly! But data from Beauhurst shows that 70% of UK equity deals are not announced to the public. While in the case of funding rounds, this could be due to deal size or because the valuation is lower than hoped, many other high-growth firms choose to build in private anyway. And even if the reasons behind this decision are multi-faceted, the pandemic-driven shift away from ‘growth at all costs’ to more sustainable progress has only enhanced its appeal.
While it depends on the industry, many startups and scale-ups have raced tell the world about a new concept at the first opportunity, innovation or injection of capital. However, others are playing a longer game, considering factors beyond broader industry exposure when weighing up how and when to reveal themselves. A slowdown in funding aside, the heightened congestion of startup land also means its inhabitants are cautious to protect IP and avoid giving competition unnecessary advantage. The decision to ‘emerge from stealth’, therefore, appears to be contingent on the product, industry and ability to mitigate these risk factors.
That means there is a swathe of early-stage companies more strategically evaluating the promotion of key milestones like funding rounds. This creates a comms challenge – how and when should they come out of hiding? Here are some considerations for start-ups considering how and when to make the leap into the public domain with an announcement or sustained communications programme.
Once a founding team has worked so hard to woo investors and develop a cutting-edge product, it’s tempting to promote the result of these efforts immediately. But that’s when discipline is important. Look beyond the potential moment in the spotlight and ask yourself – are you ready? Has a competitor just made a similar announcement in the space? Are you ready to answer all the questions a journalist might throw at you?
This boils down to whether a startup is well placed to capitalise on the interest generated by a milestone announcement. That could be about waiting until there is other news in the pipeline to follow on quickly. But more than that, it’s essential to ensure that company spokespeople are equipped with interesting talking points and proactive thought leadership angles in the aftermath of a major announcement. That’s how you avoid being a flash in the media pan and consolidate your status in the minds of target journalists.
So, you’ve made the decision to enter the public domain. Now think about the intention behind it. Looking for brand awareness and industry buzz? It’s a well-trodden path, often featuring engagement with high-circulation, global publications like TechCrunch and Forbes.
If the aim is to accelerate commercial traction, consider top vertical publications or specialist industry reporters at national titles that might have a more targeted readership. Your announcement might be the hook they need to justify covering an early-stage business, but via an exploration of industry trends rather than a dedicated company profile. Alternatively, the announcement might be an important vehicle to add headcount. In this case, target publications based on the type of employee you’re looking to recruit – perhaps you specifically need AI engineers that read technical titles.
You might not get the coverage you hope in your target media on Day One. Funding announcements, right now, are still a very competitive business. But, if you keep pushing out news, then sooner or later, a reporter will decide to use your latest story as a hook and your funding news will form part of the feature. It may even be a bigger piece than if the funding had been covered immediately.
Part of the reticence towards emerging from stealth is the idea of putting your story in the hands of subjective journalists. Although this is an important stamp of third-party validation, it’s not the only avenue available. If there is hesitation in the name of controlling the narrative, you can still make an announcement via owned channels – from social media channels, to blogs, to events.
Of course, companies in stealth mode are less likely to have large online followings. But for some, perhaps those born out of academia or remaining in the R&D phase, a launch announcement would be better directed towards a specific audience/community rather than mainstream media. In any case, platforms like LinkedIn make it more straightforward to access a mass audience when the time is right.
The rise of the ‘stealth’ approach is a symptom of how the startup and investment landscapes have evolved. While it ensures early-stage businesses don’t dilute the impact of milestone announcements, arriving with a bang rather than risking media fatigue with a series of weaker stories, it makes it even more important to get that launch moment right. Whether you want mass industry buzz, or just a chance to control your narrative, there are tactics to suit every aim.
If you’re a startup or scale-up interested in hearing more about how to use communications to launch your proposition, please get in touch at [email protected].
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