In 2010, a well-known company received its first major funding, a $1.3 million round led by First Round Capital. In early 2011, it raised another $11 million in a Series A funding round led by Benchmark.
This well-known company is none other than Uber.
And as you read this, Uber is funded by 117 investors. PayPal and Asas Capital are the most recent investors.
But how did this brand raise such high funds?
Sure, marketing tactics and business models help the business grow and thrive but not everyone can access these internal policies. So then how did they ensure that people who didn’t know their plans had faith in their potential?
The answer is simple: a strong brand identity helped Uber find its foot in the global market. But what helps create a strong brand identity?
In this blog, we aim to answer this question.
How to create a strong brand identity?
Before I started working on this article, I had the privilege of engaging with Mr. Vigyan Lodha, a seasoned angel investor who has an impressive portfolio of investments in more than 25 startups. As a serial entrepreneur and the accomplished Managing Director of Majestic Basmati Rice Pvt Ltd, Mr Lodha was kind enough to share the key factors he considers when contemplating investments in startups.
He says, “Being seen as a trustworthy startup makes an investor believe in you. Not everyone thinks about it this way, but having a good reputation is like a ticket to being taken seriously in the business world. And it all begins with having a strong brand.”
So let’s see the 5 things that help you build a strong brand identity for fundraising AKA, getting to the right table.
- A powerful story–
Your brand acts as a trailer for your movie (read: business). Just as actors inspire their audience, brands can be a source of inspiration too. If your brand tells an inspiring story and offers a great solution to common problems, it can attract investors.
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His success led to expansion into new products like wireless chargers, and within three years, the revenue soared from 30,000 per month to 5 lakhs a month. Aman Gupta, the founder of BoAt, was impressed by the brand’s strategy and became a potential investor in Hammer.
- A meaningful brand Logo:
Your brand’s logo is like a movie poster that grabs people’s attention. However, if your logo also clearly represents your product or service, it becomes even more effective.
Take Adidas, which is a strong brand, the 3 diagonal stripes are the first thing that comes to mind. Three lines increasing their length consecutively has a goal of mountaineering that Adidas speaks of. If your logo is speaking to your audience, then yes you have won a visual race. However, logos that lack meaning are less likely to represent the goal of your brand through a visual tool.
- Pricing the product–
Think of pricing as the steering wheel for your brand. You can adjust it to match the conditions your brand is facing. Things like how much it costs to make, what your competitors are charging, the income of your target customers, how much profit you want, and how much demand there is all play a role in deciding the right price strategy.
For instance, in its early years in 2014, Aman Gupta’s guiding principle at BoAt was a combination of low prices and high quality. This set them apart from competitors who were following a high-price, low-quality approach. This approach is one of the factors that can make a brand strong. No wonder BoAt has now got 6 investors with a total funding of $177M.
- Advertising your existence–
Brand awareness acts like a medium that allows you to make a connection with your intended audience. Think of it as a way to knock on their door, to get their attention. Once you’ve established this awareness, you have multiple avenues to reach and engage with your audience.
When I talk about raising funds online, I mean using various methods like creating content that shows up on Google (SEO), working with influencers, selling things on websites, using Google Ads, and following the rules of different social media platforms. For example, making your Instagram page look good, talking about how you make things, and adding some fun to your ads. All of these are different ways to make online fundraising work.
- Constructing on Feedback–
Feedback is nothing but a letter to the brand by its target audience.
When a brand has an online presence then taking feedback through comments, emails, etc. becomes not only a necessity but also one of the biggest online fundraising strategies. That is because investors always keep an eye out for improvement-oriented brands.
That brings us to the touch factors described by Ambi Parmeshawaran and Sridhar Samu. One of Japan’s companies redesigned the packaging to improve touch factors as the napkins were noisy when opened by the people in the office. These reflections on customers’ practical usage of your brand are always a recommended move.
With these insights, you now have a collection of strategies used by successful companies to understand what makes a brand strong. However, the question remains: are these strategies sufficient to attract investors?
Things to keep in your fundraising pitch deck that say ‘I have a strong brand.’
Building a brand is the first step, using it to raise funds is the most crucial step. A strong brand identity is a money-making machine if used right. In the next 5 steps, you’ll be hands-on with how to use your brand to raise funds AKA strong-arm the investor the right way.
As Vigyan Lodha said “A strong brand identity can only lead you to the right table, what happens after that boils down to several other factors.” Here are 5 things that you can add to your pitch that boasts of strong credibility:
- Your sustainable competitive advantage-
Your brand’s strength lies in its sustainable competitive advantage. What sets you apart? Are you truly one-of-a-kind, and can you maintain this uniqueness in the long run? Investors seek brands with a robust foundation and a lasting edge in the market.
Example: The Booz Scooters, which rode high after a shark tank deal, has declared itself to be the first South Asian scooters. It deals with the scooters on a rental basis, it is a long-term need as it serves the purpose to the pedestrians who can book an e-scooter through an app on feeling fatigued. Ashneer Grover and Vineeta Singh were moved by this brand’s long-term goal and they turned its investors. As per 2023 reports, this brand has got the brand’s net value of Rs.2.8 cr.
- Customer testimonials and success stories-
Including success stories give that impression that your brand isn’t just a logo; it’s a testament to your commitment and the tangible results you deliver. Don’t shy away from showcasing the substance behind your brand. Highlight instances where you’ve not only met but exceeded your commitments, demonstrating the trustworthiness and reliability that define your brand.
Example: In 2015, the Maggie crisis over the results of laboratories saying Maggie contained 17 times the permissible limit of lead. The nationwide ban on Maggie dropped its prestige.
However, the zeal of Nestle to ensure brand quality through a wide range of campaigns, product diversification that can fill the vacancy of Maggie, improving supply-chain for faster reachability, etc., made them not only survive but thrive in times of crisis.
- Brand Story and Values-
At the core of your brand is a compelling story and a set of values that make you who you are. Share the personal narrative of what your brand represents, the principles you stand for, and the journey that brought you to the investor’s doors.
Example: Zomato is a prime example to understand this. One day, the co-founders saw their coworkers trying to get a glimpse of a menu card at a restaurant. That got them thinking, and they came up with the idea for a food delivery app. They partnered with local restaurants to bring people the food they wanted. Zomato became famous for food delivery. Now, they’ve got support from 14 different investors, who’ve given them a whopping $2.7 billion to make it all happen.
- Market Recognition-
Recognition speaks volumes about your brand’s impact. Do people know you? How do they know you? Highlight the ways in which your brand has made a mark in the market. From awards and accolades to media coverage, your brand’s recognition is a testament to its credibility and influence.
Example: Nykaa originated when its founders sensed a need for an online platform with a wide range of beauty products that can reach to doorsteps. They did not limit themselves on screens, they turned as offline stores too for giving practical grounds to the customers. Nykaa assured to never compromise with the quality and guaranteed skin-friendly products. As a result of its successful growth, it has won 27 investors and garnered the total funding of $215.4 M in 2022.
- Strategic Partnerships and Collaborations-
Your brand isn’t isolated; it thrives through strategic partnerships and collaborations. Showcase key alliances with reputable brands, organizations, and influencers. These affiliations reflect positively on your brand’s reputation and contribute to your strength and credibility in the market.
Example: Mamaearth caught the attention of Shilpa Shetty as she was attracted by their safe and natural products. Shetty today, is not only an ambassador but also an investor of Mamaearth. Kanwalijit Singh, one of the investors has said that this brand has crossed 300 Cr in three-four months before the closing of F.Y 2021.
My 2 cents:
I understand how exhausting it can be to focus on creating an online brand whilst trying to keep your business growing and running. While a lot of it stems from the fact that the early days of business requires your full fledged attention and hence time to dedicate to build a brand can be short.
That’s where I come in. I take charge of growing your online brand personality while you focus on your business.
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Book a call today to get a tailor-made strategy for your brand.