Deciding a startup's value is not easy. Especially in the deeptech world. Innovative projects are often prototypes and don’t have revenue figures to use as a benchmark. Without metrics, in the early stages, investors are buying into the founder and their story.
However, many technical founders suffer from ‘quiet genius syndrome’. They build incredible intellectual property, assemble brilliant engineering teams, and solve complex problems, without making any noise on LinkedIn or in the media. They operate under the assumption that the tech will speak for itself.
When it comes time to fundraise, these founders can struggle. Conversely, those who do create a buzz - like Swedish vibe-coding startup, Lovable - can achieve valuations well above existing revenue.
Investing starts with a simple search
The first port of call for an investor is pretty simple. Google. They will search the web to see what is out there. Increasingly, this due diligence is being done via AI-powered tools like ChatGPT, Gemini, or Perplexity. AI tools scan and analyse thousands of pages of corporate filings, earnings call transcripts, and news articles in seconds, but if there is no narrative out there, then the AI doesn’t have anything to pull from.
This is the new CommsTech reality. We are not only creating for humans; we are writing for the algorithms that investors use to summarise a business’s worth. In practice, this means generating third-party content that tells the business’s story and ensuring owned content is aligned and discoverable by the AI.
Investors are looking for market validation outside of what the founder will tell them. If they search for the company and find tumbleweeds, a stagnant blog, no media mentions, and confused messaging, the company looks riskier.
In the absence of a clear public narrative, investors will create their own, usually based on scepticism. A lack of public footprint makes investors nervous.
The opposite is also true. If they find a raft of positive news stories about the business, partnerships with big-name brands, prototypes being put through their paces and strong messaging, then the dynamic shifts and confidence is built.
Build your narrative
To maximise valuation, startups should embrace a CommsTech approach as a pre-funding strategy. It should be viewed as the pitch deck before the pitch deck. It requires the same level of strategic rigour as the product roadmap.
To do this well, businesses need to implement a strategic long-term communications approach:
- Build messaging - Before embarking on external communications there needs to be clarity over what the business stands for. What is it trying to achieve? What problem is it solving? And crucially, who needs to hear this messaging.
- Establish credibility - Once messaging is established, identify topics that key audiences care about. Develop a clear and authoritative range of thought leadership content, highlighting expertise in publications that potential investors will read.
- Be topical - Alongside a drumbeat of thought leadership, there will also be opportunities to comment on breaking news. Responding to hot topics shows the founder has their finger on the pulse and the quotes can push important narratives.
- Announce, announce, announce - When the business makes progress, make it a press moment. Whether it is a partnership story, the development of a prototype, or a senior hire, every success is an opportunity to build momentum and create more buzz externally.
If the tech is revolutionary but the story is invisible, this can be the difference between a £1m and £5m seed round valuation - a gap we’ve seen repeatedly for clients operating in comparable markets. By telling the story behind the technology and creating a buzz in the media, investors will have confidence in the business and its motivations.
Your next valuation is being determined by ChatGPT, not in a pitch meeting. What will investors find?
If you are ready to control your valuation, contact Antidote today to discuss how a dedicated CommsTech strategy can ensure your story is heard by the investors who matter most.
