Venture Capitalists Engage in Brand Marketing

In the past venture capitalists stood in the shadows of their successful portfolio companies hinting about their contribution using veiled wording in Twitter posts. Today we see VCs stepping up to take more credit for their contribution. There are numerous examples of VCs using successful exits as validation for their investment thesis.

With the explosion of the number of venture capital providers comes the need for VCs to engage in brand marketing. A list of successful portfolio companies burnishes their brand and helps them gain new deal flow as well as limited partner investors.

Just having a fund is no longer a source of attraction for the best deals- there are too many other funds out there. Today VCs have to position themselves as unique in expertise, dealflow, support, and connections.

VCs need to gain market exposure on their unique value proposition to generate deal flow which is the lifeblood of the VC business model. They are now brand managers who in many cases have a business development and marketing team driving the awareness around their fund.  

As venture capital becomes more abundant, the startup has more choices to consider.  

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