Communication must "keep up" with the business.

Communication that convinces at the start-up stage is insufficient at the next stage of the company's development. It must evolve along with its development - based on different arguments, data, a new narrative, but also reach new market audiences.

The transition from the start-up phase to the next stage of development, when we can think of the company in terms of "already scale-up", is not only an acceleration of growth, but also a moment to change the way  we communicate with the market, especially with investors. The implementation of the communication assumptions from the time of the seed round will not necessarily work in series A or B.  The business reality in the company is changing, expectations are changing, and the narrative should change with them. That is, a way of "telling" about why a given business model makes sense, how it will develop further, how much agency the founders have and why it is worth investing in it.  

What is important in the investment narrative at this stage of the company's development? Certainly, data, empowerment in the market context (current and future) and the role of a well-functioning team and trust in it.

Now we need more specifics than ideas "whether the solution will work". Regardless of the channel or communication contexts – whether it will be in a social media post, networking at an event, or in an investor presentation.

It's time to show the answers to the following questions in the communication assumptions:

• whether and how a given solution or product can be scaled,

• whether the team is able to successfully move from the experimental stage to operational maturity,

• whether the company knows its unit economics (cost of customer acquisition, revenue generated by one user at a given time, etc.),

• does the company have a plan for profitability (or a strategic exit)?

• does the company have an idea for an equity story related to growth, expansion and automation (MVP and product market fit are not enough)?

• whether it emphasizes smart risk and is able to show a strategic reward - a well-thought-out strategy for remunerating employees that supports the company's business goals.

In practice, this means that in communication with the investor, the emphasis must be shifted – from vision and innovation to evidence, data, scalability and predictability based on specific data, resulting from the startup's achievements, but also market circumstances and trends.

In every communication, let's put data above declarations. Let's talk about real preparation for the company's growth. It is best when we show them on metrics and numbers, such as:

• CAC vs. LTV – one of the most important comparisons in the financial analysis of startups – which will help answer the question of whether the customer we acquired brings more money than it cost to acquire it?

• Churn

• ARPU,

• conversion from channels,

• revenues from segments,

• and others

The more metrics per user, per market, per channel, the better, because they are more specific and reliable. Data-driven arguments create the most convincing language that investors and other market players important to the startup's environment understand.

What is the plan for scaling?

Considerations about the market potential should be behind us at this stage. Now it's more important to tell how exactly the startup plans to scale. Therefore, the answers to the following questions should be introduced into communication: to which markets and why? What expansion model (direct, through partners, or otherwise? What do we automate and at what stage?).

Time for an operational team, founder-driven is not enough

Investors want to know that the company no longer depends on just one person, or the founding team. At this stage, it is worth communicating: an extensive team, not only the highest level, experience of managers in both creating a company and scaling, with history and evidence of agency, and preparation for building the structure (or its beginnings), taking into account the culture of the organization.

How will we use the capital raised?

Instead of saying "we are looking for EUR 3 million for development", let's talk about specific plans for spending them. For example, "We need EUR 3 million, of which EUR 1.2 million will be spent on expansion in South American countries, 1 million on sales automation using specific tools, and the rest on building a sales team. Expected revenue growth: 3 times over a year and a half." This narrative shows that the founders have a specific plan, not a vision of needs.

Plan B – always worth having

Experienced entrepreneurs know that not everything always goes according to plan. It is important to show that the founder is aware of this not only at the level of imagination, but can realistically assess risks, plan how to mitigate them, but also creates a plan B or even C. In this way, he proves that he will know what he will do if the market does not react as expected.

Tone of voice - substantive, less marketing

At this stage, investors are not looking for admiration – they are looking for competence and maturity. Let's avoid exaggerated promises and emotions, let's not focus on vision and originality. It's time to prove agency - for facts and successes. What will help to show them:

• narrative based on facts and experiences,

• demonstrate what works, what has been tested and how it has been tested

• let's talk about what the product is and how it works, but above all, why it matters to the market,

• honestly and courageously, let's admit things we don't know yet – it's important to know and skillfully tell how to check them.

To sum up - a company that moves from the startup phase to the scale-up phase should communicate based on data that it can grow responsibly and strategically. The language of the investor and the market is the language of data, plans, risks and scalability. Therefore, in the new narrative, it is worth replacing "revolution" with "predictability", "innovation" with "confirmation of a model that works".