This article isn’t exclusively directed at startups. It’s for matureups. For all companies.
Text by Alon Sochaczewski, Founder and CEO at Pipeline Capital.
One of the biggest detractors of value and recognition for a company in its liquidity process is its recognition by investors and the market.
A company with a great team, leadership, and product, but without brand awareness, loses value.
Opening a dialogue with an investor, without them having heard about your company, immediately starts institutional advertising by your advisor and creates an additional challenge.
It creates distrust, insecurity, and, logically, the investor unconsciously reflects on how such an interesting company was never known or heard of.
Therefore, investment in marketing, and especially in awareness actions, does indeed increase your company’s valuation. It creates recognition and trust.
Sponsorships, participation in events, fairs, PR, and many other initiatives that are difficult to measure the ROI, believe me, have a function in the most challenging metrics of the return attribution model, which is Valuation.
Reflect and consider how much you invest in your brand, the greatest fixed asset of your company.
The option is, once again, to stay behind and be dragged along, complaining like astonished rebellious teenagers. As always.
Text by Alon Sochaczewski, Founder and CEO at Pipeline Capital.
Originally published on LinkedIn.
Read more articles by Alon Sochaczewski:
- The Medium, the Message, and the Relationship
- M&A market is like a movie
- M&A shows positive trend, which should consolidate
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