Strategies for Startups and VCs in Today’s Market

June 10, 2025

Over the last few years, the venture capital (VC) landscape has been rocked with major turbulence, leading to a tightening investment landscape and the need for new strategies to generate positive business results. In this more selective and competitive environment, both VC firms and their startups must communicate their value with precision. To attract a strong portfolio, VCs must demonstrate they are more than check writers. Tech startups, which are competing for investment funds with companies already proving their ROI, such as OpenAI, need to prove they are investment-ready. Clear, strategic storytelling – online, on social, at events – can help VC firms attract limited partners and deal flow, while empowering startups to gain visibility, credibility and momentum in a crowded market.

Winning VC Attention in a Tight Market: How AI Startups Can Use PR to Stand Out

The VC market, which has cooled from the free-flowing days earlier this decade, now faces fresh geopolitical headwinds — including uncertainty around global tariffs. We can expect the cautious and strategic investment climate to continue. While overall global VC investment saw a surge in Q1 2025, reaching $126.3 billion largely due to mega-deals like OpenAI’s $40 billion raise, the number of deals has declined.

Not surprisingly, AI continues to dominate top funding rounds. But the era of indiscriminate investment in anything AI-related appears to be over — at least for now. Instead, investors are zeroing in on strategic opportunities in fast-evolving sectors.

“The VC market is shrinking, and investors are taking a more careful approach,” said Brent Shelton, VP of media relations at Bospar. “There was a lot of big money being tossed around for AI platforms, but now investment is more targeted and focusing on industries that have a long lifeline, such as healthcare, insurance and fintech. Generalist AI is saturated; applied AI with strong data moats is hot.”

“We are seeing more specialization within industries, rather than throwing money at whatever AI comes along,” agreed Joe Valensky, Bospar media relations manager specializing in the VC/startup landscape. “There’s also a much bigger divide in where the money is going. While the OpenAI-types have multi-billion-dollar rounds, there’s more hesitation with smaller up-and-comers due to the longer ROI timeframe.”

Along with sectors such as healthcare, VC interest is shifting to foundational technologies supporting AI and innovation at scale — such as data centers, edge computing, governance, security, robotics, renewable energy and EV infrastructure.

“Everyone has big ideas for AI, but it still requires major computational power,” said Valensky. “The success of companies like Nvidia proves that the real winners right now are the ‘picks and shovels’—the infrastructure powering this next wave.”

How can a startup attract investment money in the current environment?

Building Credibility in a Shrinking VC Market

As capital becomes more selective, startups must go beyond showcasing technical merit to secure investment. They need to build trust, stand out from the competition and increase visibility. They must articulate clear differentiation. 

Strategic public relations (PR) brings that differentiation into public conversation, helping startups shape perception and stay in front of investors.

PR can help startups build credibility,” said Shelton. “When you’re trying to foster that net-new interest, you need the validation of a Wall Street Journal, TechCrunch or VentureBeat reporter who thought it was worth their time to cover your company.”

Case in point: Alembic, a startup featured in VentureBeat, saw a direct spike in investor interest after the article ran, including positive attention from NVIDIA CEO Jensen Huang — who agreed to be quoted in the press release announcing the fundraise. That one hit helped catalyze a major Series A round. 

“The names and people attached to Alembic now, because of the traction they’ve gotten, is incredible,” said Valensky.

A PR Playbook for Attracting VC

The goal is to be more than just another startup — there are so many overlapping tools and derivatives, especially within the AI environment.

You’ll want to showcase across platforms your unique value proposition, expertise and potential for growth.

Here are strategies on how to raise your startup’s visibility in today’s VC market.

1. Develop separate marketing and PR budgets and initiatives

“There’s a running joke in the PR world: no one really knows what PR professionals do — unless they’re in PR themselves,” said Valensky. “That’s why startups with limited budgets often lump PR and marketing together.”

But this approach can backfire. Marketing and PR serve different purposes. Marketing focuses on generating and converting leads to drive sales. PR, on the other hand, is about strategically building credibility, trust and relationships with stakeholders and the public. Both are essential, but they require distinct goals, tactics and budgets to be effective.

2. Build the right media mix
If you’re raising funds for an AI-powered platform, you’ll want placements in top-tier tech outlets like TechCrunch and VentureBeat — but don’t rely on one type of media. “Many AI investors are glued to niche outlets like Fierce Healthcare, Insurance Journal, Finextra and AI-focused newsletters like Ben’s Bites and TLDR AI,” said Valensky. These specialized channels help build trust with the right audiences.

For maximum visibility, don’t over-rely on traditional media. Blend earned media with newsletters, social content and event-based PR to expand your reach and signal momentum.

3. Embrace thought leadership
Beyond media hits, thought leadership cements authority. Create a visible, intellectual footprint that validates your expertise. Publish op-eds, trend reports and white papers, speak at conferences, leverage newsjacking opportunities and maintain an active social presence, especially on LinkedIn. 

“Create social proof in industry-specific spaces, which demonstrate a startup’s authority and commitment to its field, making it more attractive to investors, who’ll want to see who’s following and engaging with you,” said Shelton. Highlight your team’s expertise, strategic hires and board advisors.

4. Tell a strategic story
Focus on storytelling that demonstrates unique market differentiation and how your innovation solves real-world problems and aligns with broader market trends — in healthcare, financial services, AI governance, renewable energy, robotics and edge computing, etc. “Timing is everything,” said Shelton. “Showing relevance to current industry needs demonstrates the ever-important ‘why now’ and ‘why you.’”

Have data to support your argument? Even better. Third-party data adds credibility and objectivity and ties your solution to broader market trends. 

5. Keep the momentum going
Leverage early adopters and any performance data into case studies, testimonials and influencer-driven PR moments to keep the momentum going.

  • VC funding is down, but ROI-focused capital is still flowing into applied AI
  • To attract investment, startups must clearly differentiate their solution
  •  PR builds credibility, opens doors and accelerates trust with potential investors
  • Be everywhere your investors are – not just “prestige” outlets  
  • Position your company within broader industry narratives to show relevance and urgency

Rebranding your VC firm for today’s startups

In today’s venture landscape, your brand walks into the pitch before you do. Founders, LPs and fellow investors are sizing you up the moment they hit your homepage (or your social media pages). Branding is critical, boosting visibility, showcasing innovation and signaling credibility, trust and staying power. The most successful VC firms use their brand reputation to propel fundraising rounds and attract top-tier startups.

Yet many VCs haven’t refreshed their story in years. Meanwhile, media-savvy funds with hot-take newsletters and mic-drop logos dominate headlines. VCs need sharp narratives to stay relevant. 

“The ‘Silicon Valley ATM’ thing is definitely a perception you need to work against, especially when looking to attract the super hot startups that have taken the time to do reputation and credibility building,” noted Joe Valensky, Bospar media relations manager. “They are beating away VCs with a stick. They only want to be indebted to VCs or give up X amount of capital. They can’t just take all the money that comes with them, because then they’ll just be diluted to nothing. And so they need to make strategic choices about who their partner is going to be.”

Why Would a VC Firm Consider a Rebrand?

What Does a VC Rebrand Look Like?

Rebranding isn’t just about a new logo (though we love a bold visual refresh). It’s about telling a more cohesive story — one that resonates with founders, LPs and the broader tech ecosystem.

Tsingyuan Ventures, a VC firm based in California, wanted to expand beyond its reputation for backing Chinese-founded startups. Leadership wanted to reintroduce the fund after closing an oversubscribed $100 million fund. Its rebrand as Foothill Ventures reflected its Santa Cruz mountains roots and focus on tech firms on a global stage.  Bospar showcased Foothill Ventures’ progression and global impact in the technology sector, securing placements in leading technology and business outlets, including The Wall Street Journal.

“Mid-level VC firms have no choice,” said Brent Shelton, Bospar VP of media relations. “Evolution is everything, they have to stay just as attractive as the startups do when it comes to fundraising. And a lot of times that’s a way bigger investment than just a seed round. SignalFire (a Bospar client) just raised over a billion for a mid -level VC. That’s some pretty powerful money.” 

One of the reasons SignalFire is so attractive to institutional investors is because of Beacon, its homegrown AI-powered platform that gives it a serious competitive edge for supporting and sourcing early-stage startups. From its earliest days, SignalFire operated like a tech company, leveraging an engineering team as well as a strong founders lineup to stand out from other VC firms.

Not every VC firm is going to have a proprietary AI platform in its offerings. Still, a rebrand isn’t just slapping on a sleeker logo. It’s a full reset of how you show up in the market. That means clarity of mission, voice, visuals and narrative  — and consistency across platforms.

Strategic steps include:

VCs look for startups with a compelling story, polish and presence. To generate their own buzz, they need to do the same.

  • A VC firm’s brand often makes the first impression — and can make or break founder and LP interest
  • Rebranding is essential to show credibility and build trust
  • In today’s market, perception is performance — outdated branding risks losing top deals and media attention
  • A successful rebrand tells a clear, consistent story across platforms, not just a new logo

How VCs can leverage social media

In today’s fast-paced tech ecosystem, your online reputation is more than just branding; it’s an outlet for your point of view and a platform for attracting deals. Leverage social media to cut through the noise and connect with founders and the broader startup community in meaningful ways.

Build Brand Credibility With Insight-Driven Content

To earn trust and authority online, VC firms must share original thinking to demonstrate their market expertise.

“Consider Thought Leader Ads on LinkedIn to reach decision-makers in specific industries with tailored content showcasing your expertise in the space,” said Sarah Woelfel, account manager, social media at Bospar. 

Humanize the Firm to Build Trust

Putting a human face to your firm helps demystify venture capital and allows your firm to develop stronger relationships with limited partners, founders and the broader startup community.  

Attract Founders and Drive Deal Flow

Founders are paying attention to which firms show up, engage with others and openly share their expertise and strategies.

Repurpose, Reuse and Amplify

Maximize the impact of social media content by adapting it across platforms to work efficiently and further establish authority and recognition.

“Always tag reporters and media outlets when publishing coverage,” advised Woelfel. “This helps expand reach, build credibility and strategically position your VC in front of the media.”

Create a strategy that leverages the different platforms’ strengths and your firm’s goals:

  • Thought leadership through social channels creates trust and credibility
  • Human stories resonate and raise your profile
  • Social engagement can generate deal flow as you build a presence in the ecosystem
  • Repurpose and adapt content across multiple channels to expand reach
  • Adjust content to channels to meet investors and founders where they like to learn

Case Study: Using PR to Tell a Bigger Story — and Attract the Right Attention

Announcing funding is a common moment for early-stage companies to seek press attention. But for deep tech startups with complex products, simply sharing the funding total isn’t always enough to break through.

That was the case for Alembic, a marketing analytics company applying AI techniques like causal inference and graph neural networks — some of which were developed during the pandemic — to help businesses understand the actual impact of their marketing efforts. While the technology was powerful, the story was technical, and not easy to explain to a broad audience.

To drive interest in its seed round, PR focused on framing the announcement around a larger theme: the use of AI to solve one of marketing’s most persistent challenges — proving ROI. The company’s founders and engineers had backgrounds at Facebook, Google, LinkedIn and Twitter, and this credibility helped secure early interest from tech-focused reporters.

The strategy worked. Alembic was featured in VentureBeat, with a detailed article exploring its AI approach. That story eventually reached NVIDIA CEO Jensen Huang, whose team later initiated a pilot with Alembic. 

By the time Alembic raised its Series A two years later, the team had more than just funding news to share. In addition to securing backing from WndrCo, the firm led by Jeffrey Katzenberg, and Joe Montana’s VC firm, Alembic could now cite NVIDIA as a customer — and was able to include a quote from Huang himself in the news  announcement. 

Rather than focus solely on investor names or funding size, Bospar used this moment to show traction, customer validation and a clearly differentiated product. The news received widespread media coverage, including in Agence France-Presse (AFP), Axios, Bloomberg News, Business Insider, MarketWatch and VentureBeat. 

Dnyuz and NewsBreak were among a dozen sites syndicating Michael Nuñez’s article for VentureBeat, while Priya Anand’s Bloomberg News feature was syndicated to Yahoo Finance and across Bloomberg media channels. Jon Swartz’s article for MarketWatch was picked up by Morningstar and several tech outlets. 

On the heels of that tier-one coverage and other results, an Agence France-Presse (AFP) story by Julie Jamot syndicated 100 times, including to the Daily Mail.com.

Bospar’s outreach efforts led to 328 media placements, securing a UVM of over 1 billion. 

On the strength of this coverage, Alembic saw an increase in investor interest and inbound customer leads.

  • Funding news can be a vehicle for telling a bigger story — especially about innovation and impact
  • For complex technologies, tying your product to tangible business outcomes makes it more relatable
  • Credible third-party validation, whether from customers or investors, can boost trust and attention
  • PR works best when it’s not just about what you raised, but why it matters

If you’re a VC that wants rebranding for today’s environment, or a startup that wants help crafting your plan to attract investment…

Bospar’s “politely pushy” experts are just a click away. Reach out to learn how we can help you reach your business objectives.

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About the author

Aran Richardson has 30 years of content creation experience in public relations and marketing communications. He also worked in corporate communications in multiple verticals. Aran’s industry experience includes AI, IoT, cybersecurity, machine learning, healthcare technology, fintech, storage, banking, lending, agriculture, consumer products, gaming, sports and various others.

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