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Home / Google / Why a SEO Strategy Can Help With Series A Funding

Why a SEO Strategy Can Help With Series A Funding

October 15, 2014 By John E Lincoln

After you’ve successfully navigated the Seed stage for business funding, Series A funding is then needed to further establish your customer base, product distribution, and business model. However, after the economy tanked, thousands of companies in the initial Seed stage were orphaned as the Series A Crunch began, making it seemingly more difficult for businesses to attract investors.

Although it appears to be more difficult to receive Series A funding, the requirements have remained unchanged for more than a decade. One fact that is true in 2014, and in the past as well, is the fact that there’s an excessive demand for funds, but a limited supply of financing. Competition is stiff to receive Series A funding, so you need to ensure that all of your ducks are in a row prior to seeking investors. To become more appealing to investors, leverage your SEO strategy to develop your business and marketing plans, which are needed to prove your current and potential business growth.

Why an SEO Strategy Can Help With Series A Funding

Why an SEO Strategy Can Help With Series A Funding

The Path from Seed Funding to Series A

It’s much easier to start a company than it is to receive the funding you need from investors, which why as of 2012, only 39 percent of Seed companies succeeded at raising follow up capital. During the Seed process, you’ve established your purpose, a theory plan for distribution, and your potential customer base to gain early stage investors. However, to move on to Series A funding, you now need a business model and proof connecting your product base to your customers. This involves defining your scale of distribution, geographical verticals, customer base, marketing plan, and more.

Shows Traction

With the essential elements of an effective SEO strategy in place, you not only show investors that the ability to reach certain metrics is a possibility, but prove that your product is gaining traction through your marketing efforts. Investors view this as proof that your company has the grounds to succeed. Even if your SEO strategy has yet to turn a large profit, investors for Series A funding aren’t always concerned with the amount of revenue you’re driving, but instead, the potential for revenue. With a large customer base developed, you’re able to prove that potential for revenue is there as you‘ve gained traction.

Shows you have Defined Customers

You’re showing investors that you’ve defined your company’s niche market and that you’re actively able to reach your targeted customers. This shows investors that you’ve already established your customers’ needs and how those needs will be met through the research you’ve conducted. Investors may be impressed that you are not only doing marketing, but understand SEO and why it is an important part of the marketing mix.

SEO Aids Distribution

As you’ve already reached your targeted customer base through keywords, content, and marketing, you have a good foundation for a distribution plan. Investors want to see the dream in a company they are investing in and how that dream will be achieved. With a solid online presence, you offer investors well defined potential for growth opportunities while distributing your product to a massive customer base that’s already in place. Furthermore, when you create pages for SEO that in-turn gives you areas to drive your other online marketing efforts.

Shows you have Done Market Research

As you’ve worked on your SEO strategy, you’ve conducted market research and analysis to figure out how you’re going to reach your customers. This offers less risk involved for investors as you’ve conducted the necessary research needed for your customer base. You’ve not only defined your customers, but your competitors. You now have proof to show investors that you’ve risen above your competition through finding gaps they have missed, producing new opportunities for business growth. You’ve already overcome the period of trial and error and hold the SEO and marketing analytics as proof.

Custom Tailored Business Plan

With all of the components involved in SEO, you’re able to create a well-defined and custom tailored business plan to present to investors. You can show exactly what worked in the Seed stage and what you’ll continue to implement to reach your goals while holding Series A funding, incorporating what you’ve learned into your business plan.

According to CB Insights, only 4 out of 10 Seed companies move on to receive follow up funding. By leveraging your SEO strategy to help you approach Series A investors, you’re able to prove just how you’ve caught your customers’ attention and the extent of their interest. In addition, you’re able to show how you’ll continue to market and distribute your product as the foundation is already in place. The larger potential customer base you’ve developed through search the most appealing you are to investors. Utilize the information you’ve gathered from your online campaigns to create a realistic business plan that’s ready to succeed. All it needs is the support of Series A funding.

Sources

“Using Your Business Plan to Get Funding” CEDSVG.com

“15 Ways to Prevent Startup Funding Disaster from Seed to Series A” by Josh Cline

About John E Lincoln

John Lincoln (MBA) is CEO of Ignite Visibility (a 2017, 2018, 2019 and 2020 Inc. 5000 company) a highly sought-after digital marketing strategist, industry speaker and author of two books, "The Forecaster Method" and "Digital Influencer." Over the course of his career, Lincoln has worked with over 1,000 online businesses ranging from small startups to amazing clients such as Office Depot, Tony Robbins, Morgan Stanley, Fox, USA Today, COX and The Knot World Wide. John Lincoln is the editor of the Ignite Visibility blog. While he is a contributor, he does not write all of the articles and in many cases he is supported to ensure timely content.

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About The Editor

John E Lincoln, CEO

John Lincoln is CEO of Ignite Visibility, one of the top digital marketing agencies in the nation and a 6x Inc. 5,000 company. Lincoln is consistently named one of the top marketing experts in the industry. He has been recipient of the Search Engine Land "Search Marketer of the Year" award, named the #1 SEO consultant in the USA by Clutch.co, most admired CEO and 40 under 40. Lincoln has written two books (The Forecaster Method and Digital Influencer) and made two movies (SEO: The Movie and Social Media Marketing: The Movie) on digital marketing. He is a digital marketing strategy adviser to some of the biggest names in business. John Lincoln is the editor of the Ignite Visibility blog. While he is a major contributor, he does not write all of the articles.

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