Startups announced no longer like finance news, why?

silicon valley venture Homebrew founder Hunter Walk in recent analysis of a new trend in silicon valley, a lot of startups get seed round of time is not as big as predecessors conspicuously revealed to the media, but quietly say nothing.

startup once many years ago to get financing, jumped out to loudly proclaimed to the world. Why does appear this kind of change?

recruitment patterns changed

a few years ago the media is a important way of hiring startups. Through the news media reported on financing, entrepreneurial firms can attract interest in the company.

now entrepreneurial market increasingly mature, with more and more business booming, the industry has formed a mature network. Founder formed talents recommendation and information exchange mechanism between the media is no longer an important means of attracting talent. YC founders often on Hacker News release recruitment, they build a strong community. 500 Startups investment company. Making such as network of talent is also an important channel, entrepreneurial company hiring Sourcing. IO such search engines can also help a lot. In short, through professional solution to professional things, through the media hiring importance gradually.

social endorsement, the end of the

there is a comparison between the past startups, see who could get more industry celebrities and famous angel more support. This social endorsement of proving investment value of the enterprise. Asleep business increasingly popular and refinement, however, this competition increasingly unsustainable. Along with the increase in investment projects, in fact, many investors have no enough time and intend to involvement in the day-to-day operations of the investment company.

media also bored

start to report news startup financing has become the past, the various technological media now even had some tired of this kind of news. Almost every day start-ups to get financing, “to refresh the industry change the world”. Some investors investment first company, reports the value of. But when his 50th sign the cheques, news has been very weak.

drainage from media reports, as products have no necessary

“the TechCrunch effect” are common business circle, products reported by TC, then roll in a large number of early adopters of new users. But today products more widely, the transmission way of the now even (square dance) Boyle are using smartphones, early products to hit people, more and more is no longer just the geeks view of science and technology media. And if you want through the media coverage for their products to attract new users, the finance news also is not necessarily the most effective means of communication. But to take other fancy pr strategy.

no longer need an endorsement of the media to open a us-funded enterprise CTO door

the past startups need media to increase their own “credibility”, so that you can get interview with large enterprise CTO opportunity to introduce our company products, for the entrepreneurial companies are particularly important in the field of enterprise services.

now, however, such services more flexible in form, the price also sends civilian to change more, enterprise staff and ordinary companies are more willing to try out a variety of tools to find suits own the money. Innovation has no depends on the endorsement of the media to knock on door of a big company. After all, word of mouth spread faster effect is more obvious.

tip: announced last round of financing, often is the beginning of a new round of financing

in addition to startups seek venture capital, is still too much vc crazy chase startup s. So startup can be a little more patient, pressure not to put out their own financing news. When you plan to raise new capital, and then he released it is round “timely”, strengthen the advantage to negotiate with vc for A round of funding.

Walk finally to startup a word of advice: raise your seed round and get back to work:)